(Bloomberg) — Clover Health Inc. raised $160 million from private investors, suggesting the sector is still a favorite among venture capitalists betting such startups can disrupt the trillion-dollar insurance market.
Clover’s model combines data with preventative care and it competes against traditional providers as well as startups like Oscar Health Insurance Corp. The company will use the cash to continue improving its technology and expand to new markets, it said in a statement Friday.
Greenoaks Capital led the round, pushing Clover’s total outside funding to $285 million, according to the health-tech company. A spokeswoman for Clover declined to comment on its valuation.
Insurance startups raised a record $2.65 billion in 2015, according to research firm CB Insights. And, despite a slowdown in total venture activity, that heady pace has continued in 2016 with 45 insurance deals totaling $650 million in funding, the researcher said.
Founded in 2012 and based in San Francisco, Clover Health aims to offer better and more affordable health care for consumers. Its technology pulls disparate data, including lab results and prescriptions, to identify potential health risks of its customers. If something is amiss, Clover intervenes with its own team of nurse practitioners and social workers.