The funding round was led by Koch Disruptive Technologies, with participation from new and existing investors, including GreatPoint Ventures, BOND, Cathay Innovation, Drive Capital, Duke University, Menlo Ventures, and Morpheus.
This significant capital injection will enable Sidecar Health to expand its unique approach to health insurance, which offers members greater transparency and control over their healthcare expenses.
David Mauney, Managing Director of Koch Disruptive Technologies said: “US healthcare costs are soaring towards $5 trillion annually, yet our experiences and medical outcomes are not improving. The antiquated U.S. health insurance system is one of the main culprits in creating bottlenecks and hurdles to quality care. Sidecar Health is transforming the system with a model that offers a first-of-its-kind free market approach to healthcare that puts the consumer, not the insurance company in control of their care decisions with never-before-seen tools and transparency paired with fewer restrictions. We look forward to working with Sidecar Health to accelerate commercial expansion in 2024 and beyond.”
Andrew Perlman, Managing Director at GreatPoint Ventures also commented, saying: “As the first Sidecar Health institutional investor, we are deeply supportive of how the company has fundamentally redesigned health insurance. Sidecar Health represents the most important structural innovation in decades in the biggest industry in America. They have developed the only solution we have seen to make care more affordable in an industry responsible for nearly 70% of all U.S. personal bankruptcies.”
He continued: “We are also extremely proud to have brought a major state employee pension fund – and one of the largest purchasers of health insurance outside of the federal government – to the table with a significant investment in Sidecar Health through GreatPoint. This demonstrates the wide support of the company’s mission and the impact of the Sidecar Health model.”
Kendy Troiano, Human Resources Director at Clark Grave Vault, a Sidecar Health customer, added: “Sidecar Health empowers consumers to make informed decisions about their healthcare spending. Their flexibility, combined with upfront knowledge of costs and the freedom to choose any licensed provider, allows our employees to choose healthcare providers similarly to how they would decide to purchase any other service or personal item. This transparency and control over costs enable us to maintain affordable coverage while also benefiting from the potential savings realized from informed choices.”
