Private investors have provided $4 million in financing for an insurance technology company.

Health Benefits Direct Corp., Radnor, Pa., says it has received the working capital from the Co-Investment Fund II L.P.

Health Benefits Direct has issued 1 million shares of convertible preferred stock as well as a 1-year warrant to buy 1 million shares of convertible preferred stock at an initial exercise price of $4 per share:

The shares of preferred stock can be converted into 20 shares of common stock at any time after the approval of an increase in the shares of authorized common stock of Health Benefits Direct by the company’s stockholders, Health Benefits Direct says.

Each preferred share has the voting power of 20 shares of common stock, the company says.

“The preferred stock is also entitled to a liquidation preference upon the merger or sale of substantially all of the assets of the company equal to the greater of 2.5 times the initial issue price of such shares or the amount the holder of such preferred stock would received if it participated with the holders of common stock on an as-converted basis,” the company says.

Health Benefits Direct can offer up to an additional 250,000 units, or $1 million worth of units, to existing company shareholders for 30 days.

The company will use some of the capital to support its InsPro software and version 2.0 of its Insurint field agent sales platform, the company says.