Sana, a health insurance company, announced on Wednesday that it had closed a $60 million venture capital financing.
Trust Ventures and Gigafund co-led the Series B funding round with participation from existing investors American Family Ventures, Mark vc, Breyer Capital, JAM Fund and Liquid 2.
To date, Sana, founded in 2017 by Will Young and Nathan Hackley, has raised $107 million.
“Trust Ventures and Gigafund have been investors since our funding round,” Young, co-founder and CEO of Sana, said in a statement. “They believe in Sana’s mission and have been valuable partners over the past three years. They saw the opportunity before us and supported us every step of the way.
Sana provides healthcare options for small businesses. The company reports that Sana customers often save up to 20% compared to traditional insurers. It also provides telehealth care and low co-payments.
“Health insurance is a critical way for employers to support their employees, but small business health care has been stagnant for decades,” said Salen Churi, general partner at Trust Ventures, in a press release. “Sana delivers significantly better care at lower prices that responds to users where they are.”
“Gigafund has now conducted four separate investment rounds in Sana because the team continues to impress us with their phenomenal vision and execution,” Gigafund Managing Partner Stephen Oskoui said in a press release. “Sana enables small businesses to reduce costs and help their employees be happier and healthier. The company improves the health care system and eliminates the inefficiencies that strangle the economy.
Sana plans to use the funds raised to hire new employees with a focus on customer service.
Sana operates in eight states and plans to expand to more states in the coming months.
“We are excited to use this funding to bring Sana and reliable, affordable healthcare to more small businesses and their employees,” said Young.
In January, the company opened Sana MD in Austin. It is Sana’s first primary care health center for members. The demand for appointments exceeded expectations, prompting Sana to hire more staff for the center. In addition to in-person office visits, Sana gives employees access to virtual care with providers who specialize in primary care, pediatrics, maternity, and mental health.