Austin health advantages startup Sana announced Wednesday that it raised $60 million in Series B financing, bringing its overall fundraising total to $107 million.
Sana co-founder and CEO Will Young said the funding is a signal of investor confidence. The round was co-led by Trust Ventures and Gigafund, which have funded Sana since its $6.3 million seed round in 2019. Gigafund and Trust Ventures also participated in Sana’s $20.8 million Series A in 2020 and its $20 million Series A extension in 2021.
“Trust Ventures and Gigafund have been investors since our seed round,” Young said in a press release. “They imagine in Sana’s mission and have been beneficial partners during the last three years. They’ve seen the chance that lies ahead and have supported us every step of the best way.”
Sana hopes to disrupt the medical health insurance industry by providing small and medium-sized businesses with medical health insurance plans which can be 20 percent cheaper on average.
The corporate said in a press release that when it enters a recent market, 40 percent of its customers are small businesses that were previously unable to supply health care to employees as a consequence of the high costs.
Sana said it’s in a position to offer lower prices since it is a vertically integrated company that, by brokering and administering plans, is in a position to cut out middle-man costs. Sana also reduces costs through the use of technology to auto-adjudicate claims, automate back-end services and create an intuitive enrollment process that reduces the necessity for customer support calls.
Over the past two years, Sana has expanded to serve small businesses and their employees in eight states.
In January, Sana teamed up with primary care provider Proactive MD to supply members with a clinic, called Sana MD, situated at 1715 W. thirty fifth St. in Austin. Sana said the demand for appointments has surpassed expectations, prompting the corporate to rent additional personnel.
The corporate plans to make use of its Series B funding to fuel growth in recent markets. When membership in those markets reaches a critical mass, the corporate goals to open additional health centers to serve those members.
The fresh capital will even be used to expand Sana’s workforce, particularly with customer support roles needed to serve a 200 percent increase in clients, based on the corporate. Sana currently has 170 employees, and Young said he plans to finish the yr with nearly 200 employees. The brand new funding gives Sana the flexibility to proceed hiring and growing amidst the uncertainty in financial markets, Young said.
“We’re excited to make use of this funding to bring Sana and reliable, reasonably priced health care to more small businesses and their employees,” Young said. “We’ve got 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 an ideal solution to a giant problem.”