Bessemer Venture Partners and Fidelity Biosciences have led an $18.2m financing round for Liazon, which operates the Bright Choices private health benefits exchange.
The round, which also received follow-on funding from existing investors Bain Capital Ventures and Rand Capital, SBIC, will enable the company to expand nationwide and develop new products, it said.
The online Bright Choices Exchange gives employees access to a variety of health care plans, health savings and flexible spending accounts, dental, vision, disability, and life insurance, as well as wellness, telemedicine and pet insurance.
Since its founding in 2007, Liazon has grown rapidly to serve tens of thousands of individuals from more than 2,000 companies across the US. The company has also pioneered private exchanges with providers of health, wealth and protection services.
The company serves businesses with 10 to 5,000 employees and also manages insurance programs for chambers of commerce, business associations, and other channel partners.
“Liazon is a true innovator in a space that has lacked innovation. More and more we are seeing top insurance carriers and forward thinking companies doing business with Liazon for this reason,” said Stephen Kraus, a partner at Bessemer, who has joined the Liazon board of directors.
“With Liazon, we finally feel like there is a path to resolving one of the most challenging issues of our time – spiraling healthcare and benefits costs.”
Bessemer also led a recent $21m Series B funding round for email delivery platform SendGrid. Existing investors Foundry Group, Highway 12 Ventures, SoftTechVC, 500 Startups and Bullet Time Ventures also participated in the financing.
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