Employee benefits startup League raises $47.1 million to transform corporate health benefits market
Canadian employee health benefits startup League has raised a massive $47.5 million ($62 million Canadian dollars) in a Series B funding round to transform health benefits market. The latest funding was led by Telus Ventures with participation from Wittington Ventures, Omers, Infinite Potential Group, RBC Ventures, Real Ventures, and BDC Ventures. In addition, the company also announced UK and EU expansion in 2019. The new funding will also help the company to further its mission to bring a consumer-centric benefits alternative for forward-thinking businesses.
Founded just four years ago by Michael Serbinis, League is a leading digital benefits platform for the modern workforce, turning benefits into a competitive advantage for employers, while managing costs and empowering employees to take control of their health. League’s cloud-based infrastructure connects forward-thinking businesses and their employees with health insurance, flexible spending accounts, health content, curated health journeys and on-demand, live health support. League unlocks employee benefits to give everyone the power to act every day and live longer, healthier lives. League dubbed itself as a platform that makes benefits easier to navigate and is “consumer centric.”
“Employers experiencing the war for talent, skyrocketing healthcare costs, and the mental health epidemic are rapidly recognizing that a new approach to benefits will give them a competitive advantage,” said Mike Serbinis, League’s founder and CEO. “Health benefits represent a tremendous opportunity to improve the lives and health outcomes for employees, but they’re not currently driving the business value employers should expect from their investment. League gives them greater control over their spend while delivering an unparalleled employee experience that maximizes both health and productivity.”
This funding round will also harness the thinking of Canada’s largest health IT and payment network, the largest retailer and pharmacy network and the largest bank to help advance the health benefits market. Inspired by the Amazon, Berkshire Hathaway and JP Morgan health partnership, League will now have access to the scale, capital and strategic assets to bring its platform to employers globally.
Founded in November 2014 with the mission of empowering people with their health every day, League has helped businesses bring the same kind of convenience and personalization to benefits that the Netflix Generation have come to expect in a modern consumer experience, while helping employers to manage total costs. This has proven to be a differentiator for innovative League customers such as Uber, Shopify and Unilever, who are focused on making healthcare benefits a competitive advantage.
“We believe that innovative companies like League — which deliver compelling, consumer-centric experiences — will not only drive high employee and employer engagement, but will also deliver fundamental improvements in health outcomes for Canadians through their carrier-friendly open platform,” said Rich Osborn, managing partner, TELUS Ventures. “I’m pleased to support the League team as a new board member and add the company to our venture portfolio alongside others innovating in virtual care, mental health, personal health records, wellness, and population health management.”
This latest round of funding will fuel continued growth for League, including the opening of new offices in San Francisco, New York and London. The company launched in the U.S. market in 2017, and is now licensed to operate in all 50 states. In 2019, the company will begin operations in the UK and EU. League will continue to invest in its member experience, driving continued convenience, personalization, navigation and better health outcomes for members. League will build out its benefits cloud, enabling greater choice of benefits providers and micro-benefits, while driving automation and cost savings for employers.
“Our focus on building a consumer-centric benefits platform is resonating with companies across the country that want to see their employee health plans actually make a positive change for their teams,” said Brian Ancell, U.S. president for League. “Based on a Net Promoter Score of 75 (versus an industry standard of 8) and monthly engagement that rivals most social networks, League has the potential to bend the cost curve in healthcare.”
The League platform has a constantly growing suite of apps designed to reduce the total operating costs for companies delivering benefits programs, while driving an experience that makes life easier for administrators and increasing engagement with employees that improve health outcomes. These include offerings such as a unified digital wallet that employers can customize for their specific needs; chat-based, always-on health navigation; behavior-based health rewards; and a marketplace where members can access exclusive deals on health and wellness products and services.