Sana Closes $60 Million Series B Growth Round as Demand for Modern Small Business Health Insurance Soars

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AUSTIN, Texas–(BUSINESS WIRE)–Sana, a health care company that gives health advantages to small businesses at inexpensive prices, today announced the closing of a $60 million Series B funding round, co-led by original investors Trust Ventures and Gigafund.

Existing investors who participated within the round included American Family Ventures, mark vc, Breyer Capital, JAM Fund and Liquid 2.

The Series B close follows Sana’s $20 million Series A Extension funding round close in October 2021. Sana has raised $107 million to this point.

This capital from top investors in insurtech and controlled industries speaks to Sana’s trajectory towards becoming an industry leader and difficult the ‘Big 5’ medical insurance corporations.

“Trust Ventures and Gigafund have been investors since our seed round,” said Will Young, Sana co-founder and CEO. “They consider in Sana’s mission and have been worthwhile partners over the past three years. They’ve seen the chance that lies ahead and have supported us every step of the best way.”

Sana is revolutionizing health care options for small businesses. In truth, when Sana enters a market, 40% of its latest customers are small businesses that were previously unable to offer health care to employees, largely as a result of high costs.

Sana’s customers often save as much as 20% in comparison with legacy insurers and most customers receive 0% increase renewals, which is unheard of within the industry. Sana is understood for inexpensive employer health plans, $0 virtual doctors’ appointments, low co-pays, and 95% customer-service satisfaction.

Investor Perspective on $60M Series B Funding Round

“Medical health insurance is a critical way employers can support their employees, but small business health care has been stagnant for a long time,” said Salen Churi, Trust Ventures general partner. “Sana delivers dramatically higher care at lower prices that meets users where they’re at. Sana has a revolutionary all-access network in order that members can keep their preferred providers in addition to telehealth and access to the very best health and wellness apps in the marketplace – all at a lower cost to small businesses than legacy medical insurance. Trust Ventures is proud to support Sana as they proceed delivering on their mission of revolutionizing American health care.”

These investors know the industry well and have voted on Sana’s distinct vertically integrated business model with their checks. From bringing several facets of the medical insurance value chain under one roof to providing direct primary care to members, Sana is poised to tackle the medical insurance monopolies across the U.S. in a way few others can.

“Gigafund has now led 4 separate rounds of investment in Sana since the team continues to impress us with their phenomenal vision and execution,” said Stephen Oskoui, Managing Partner of Gigafund. “Sana empowers small businesses to chop costs and help their employees develop into happier and healthier. The corporate is improving the health care system and eliminating inefficiencies that strangle the economy.”

Sana Expands Customer-Base, Geographical Presence and Team

The fresh capital will enable Sana to expand its team, particularly those that work as member advocates and in customer success to serve an unprecedented volume of recent customers. Sana clients have grown by greater than 200% through the past yr. Operating only in Texas in early 2020, Sana today is accessible in eight states. The corporate recently expanded into Virginia and Indiana, and can proceed its reach into latest states through the coming months.

“We’re excited to make use of this funding to bring Sana and reliable, inexpensive health care to more small businesses and their employees,” Young said. “We’ve an incredible group of investors who’re all experts in some facet of our business, and their desire to proceed to take a position in us is a powerful affirmation that Sana is offering a terrific solution to an enormous problem.”

In January, the corporate opened Sana MD in Austin, Texas. It’s Sana’s first primary care hospital for members. Demand for appointments has surpassed expectations, spurring Sana to extend hiring staff for the middle. Along with in-person office visits, Sana gives employees access to virtual care with providers specializing in primary care, pediatrics, maternity and mental health.

The brand new funding will even fuel Sana’s membership growth in latest markets. As membership in other markets reaches critical mass, the corporate will open additional health centers outside Austin. Sana’s mission is to make quality health care comprehensible, accessible and inexpensive.

To learn more about Sana’s inexpensive medical insurance offerings for small businesses, visit www.sanabenefits.com.

About Sana

Austin-headquartered Sana provides small businesses with dependable health plans at inexpensive prices. Through value-based care, the Sana Care ecosystem of world-class providers, direct primary care and more, Sana is reducing the associated fee of high-quality care. Sana is making it easier than ever to manage advantages for employers and offers simplified health plans and top-notch customer support to employees. Sana provides healthcare to small businesses that drives down costs while concurrently delivering an exceptional quality of care. For more information, visit www.sanabenefits.com.

About Gigafund

Gigafund is a enterprise capital firm backing the world’s most ambitious and transformative entrepreneurs. Gigafund was founded by former Founders Fund partners Luke Nosek and Stephen Oskoui and has over $2B in assets under management. Gigafund’s largest investments include SpaceX, Bloom Tech, Luminous Computing, the Boring Company, Veryable, Last Energy, and Sana. More information will be found at Gigafund.com.

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