Castlight Health, a company that aims to bring more transparency to the costs of medical procedures, has closed $100m in Series D financing in one of the largest fundraising rounds on record for a health-related software business.
The round brings the company’s total funding to $181m and includes participation from T Rowe Price, Redmile Group, two unnamed mutual funds, as well as and previous investors.
US health insurance premiums increased by an average of eight per cent between 2000 and 2009, while average household income rose by an average of just 2.1 per cent.
To combat this increase, many employers are asking employees to pay a larger portion of their health care. Castlight health care management suite enables users to make decisions based on transparent information in order to fully understand their options.
Founded in 2008, the company has attracted corporate customers including Allegis Group, Honeywell, Life Technologies and Regis Corporation.
The health care industry is in dire need of innovation,” said Bryan Roberts, a partner at Rockefella family venture capital vehicle Venrock and co-founder of Castlight.
“Castlight has the opportunity to dramatically improve the efficiency of the US health care system, providing employers and consumers with the information required to make good cost and quality health care decisions.
“Over the last two years, Castlight Health has created the unique products to drive customer traction and ROI, which sets them on a terrific growth trajectory over the next several years.”
“We were attracted to Castlight Health’s strong management team and the leadership position it has already established in the market,” added Graham McPhail of T Rowe Price. “Castlight appears poised to dominate the segment and transform how users consume health care.”
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