Report: Bright Health Eyes IPO

Mike Mikan
Photo courtesy of Bright Healt

Based in Minneapolis Bright Health Inc. is on a different planet from all the other Minnesota startups. To date, the company has raised more than $ 1.5 billion in funding.

Now a report has surfaced that Bright Health is hoping to go public with an initial public offering (IPO) later this year. Bloomberg announced the news Thursday evening in a story based on information from “people in the know”.

On Friday morning, a media representative for Bright Health declined to comment. The company has not filed anything with the United States Securities and Exchange Commission describing its intention to go public.

Founded in 2015, Bright Health is developing a new health insurance plan. The business model is to partner with a single healthcare provider in any new market it enters. Bright Health now offers insurance in 13 states and more than 50 markets.

According to Bloomberg, the company is working with JPMorgan Chase & Co., Morgan Stanley and Barclays Plc on the potential offer. Bloomberg reported that underwriters were looking for a valuation for Bright Health of nearly $ 20 billion.

“Bright Health has been arguably one of the region’s most transformative startups for a long time… fast growing, great team, major funders,” said Frank Jaskulke, vice president of intelligence for Medical Alley Association, a commercial group for state enterprises. the health industry.

Bright Health isn’t the only company in the United States trying to roll out a new health insurance plan.

Two of the biggest names in these companies are based in New York Oscar Health Inc. and based in Nashville Clover health. Both companies have gone public in the past six months.

Oscar has just been made public at the beginning of March, raising $ 1.2 billion. Clover went public last year after being acquired by a Special Purpose Acquisition Company (SPAC) in a transaction valued at $ 3.7 billion.

“There are a lot of companies that are building some kind of modern health insurance plan,” Jaskulke said.

“I think what sets Bright apart from other players in the United States, Oscar and Clover, is really their team. They have a lot of experience in health care, health insurance. They know which parts of health insurance work and they know where the challenges are. “

With the stock market soaring and money flowing freely on Wall Street, going public is a very attractive option at the moment for many companies. Sun Country Airlines of Minnesota just released two weeks ago.

Bright Health announced raising $ 500 million in its Series E fundraising round in September.

In recent years, Bright Health has represented a significant percentage of the capital raised by medical startups in Minnesota. Medical Alley’s 2020 investment report found that Bright’s $ 500 million was more than a third of the total $ 1.4 billion invested in crown medical corporations.

Twin Cities Company took an early and in-depth look at Bright Health in 2018.

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