Insurtech startup Shiny Well being has secured a $750 million capital funding that features funding from Cigna Ventures.
Cigna’s funding arm is a brand new backer for the corporate. Shiny Well being’s largest shareholder, New Enterprise Associates, may even take part as a co-investor. The funds will probably be used to assist Shiny Well being proceed to develop and improve its differentiated alignment mannequin.
The 2 corporations will buy in mixture $750 million in perpetual most well-liked inventory in Shiny Well being, in response to the announcement. These shares could be transformed into frequent inventory at $4.55 per share, which is above common for Shiny Well being’s present buying and selling worth.
Cigna may even deliver its experience within the payer area to help Shiny Well being’s progress, in response to the announcement.
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“Cigna Ventures is dedicated to bettering and increasing entry to high quality, reasonably priced healthcare, and our funding in Shiny Well being Group aligns with our imaginative and prescient,” stated Tom Richards, head of Cigna Ventures, in a press release. “We search to be companions of selection and we stay up for exploring new ways in which NeueHealth and Evernorth can doubtlessly present providers to one another’s clients and shoppers.”
The financing is ready to shut in January and isn’t topic to extra regulatory approvals.
Shiny Well being went public in June, the most recent in a string of startup insurers to launch an preliminary public providing. Opponents like Oscar Well being and Clover Well being additionally went public this 12 months.
“The funding from Cigna and NEA signifies continued conviction in Shiny Well being Group’s alignment mannequin,” stated Mike Mikan, president and CEO of Shiny Well being Group, in a press release. “We’re excited concerning the partnership alternatives for each Shiny Well being Group and Cigna to deliver reasonably priced, customized healthcare to all shoppers.”