(Bloomberg) — Collective Health Inc. is trying to raise money from strategic and financial investors in a round that would value the do-it-yourself health insurance startup at $1 billion, according to people familiar with the situation.
Goldman Sachs Group Inc. is helping the San Francisco-based firm raise another $100 million or so, according to the people, who asked not to be identified talking about private funding efforts. Collective Health has raised more than $100 million so far, with the most recent infusion coming from Alphabet Inc.’s GV, Founders Fund and others in late 2015. A company spokeswoman declined to comment.
The push comes as investors continue betting tech startups will disrupt the multibillion-dollar insurance sector through more efficient underwriting and new practices like crowdsourcing and on-demand coverage, which lets users pay for insurance only when they need it. Investors backed a record 174 insurance startups last year, an increase of 40% from 2015 and 85% from 2014, according to research firm CB Insights.