Sana Benefits raises $20 million

Sana Benefits, a provider of health insurance for small and midsize businesses, closed a $20 million Series A extension funding. Participants include Gigafund and several new strategic partners – American Family Ventures, Breyer Capital, JAM Fund, and Harmon Brothers Ad Ventures. Existing investors Trust Ventures and mark vc also joined the round.

Founded in 2017, Sana is on a mission to expand health insurance options for small and midsize businesses. The startup offers medical, dental, and vision plans and members enjoy virtual primary care, mental wellness, physical wellness, and more. Sana also plans to launch Sana MD in Austin, which will offer comprehensive primary care and same day or next day appointments, among other things. Currently, Sana is available in Arizona, Oklahoma, Texas, Illinois, and Kentucky.

“Sana’s goal is to improve health outcomes and decrease healthcare costs. We’ve developed a care model that keeps members healthy by focusing on primary and preventive care, and providing access to centers of excellence for more complex procedures. At the same time, our marketing and sales efforts are laser-focused on ensuring that as many small businesses as possible are taking advantage of that model. This round of investment supports both of these initiatives.” – Will Young, CEO and co-founder of Sana.

“Gigafund makes large, long-term investments in companies that are solving society’s biggest problems. Healthcare is an essential industry that has been broken for decades, and Sana is fixing the system by realigning incentives and delivering better care at lower costs. We believe that Sana is on track to become one of the world’s biggest and most significant companies.” – Stephen Oskoui, managing partner of Gigafund.

“For years, there has been a gap in the small business healthcare market which has resulted in unaffordable and rising premiums with lackluster coverages. In fact, even most Fortune 500s have opted to self-fund for exactly this reason. Sana is bringing much-needed innovation to the overlooked but massive small and midsize business segment through their level-funded product and revolutionizing the care options and benefits that these companies can provide to their employees.” – Katelyn Johnson, managing director of American Family Ventures.