New Columbus, Ohio Insurtech Company, Circulo, Raises $50M to Disrupt Medicaid

Rhea-AI Summary

Circulo has secured $50 million in initial funding to innovate within the Medicaid Managed Care sector, targeting over 75 million beneficiaries. Utilizing Olive's advanced technology platform, which services over 600 hospitals, Circulo aims to build a tech-driven insurance company from scratch in Columbus, Ohio. Led by CEO Sean Lane, Circulo is backed by notable investors including Drive Capital, General Catalyst, Oak HC/FT, and SVB Capital, emphasizing the urgency to disrupt Medicaid to better serve underserved populations.

Positive

• Secured $50 million for Medicaid innovation.
• Built on Olive's technology platform used by over 600 hospitals.
• Creates jobs with plans to add dozens of new roles.

Negative

• None.

COLUMBUS, Ohio, Feb. 19, 2021 /PRNewswire/ -- Circulo starts with $50M out of the gate to bring much needed, disruptive innovation to Medicaid Managed Care. Medicaid is a cornerstone of the U.S. healthcare system and is often passed over by venture backed startups who aim to disrupt Medicare Advantage and commercial health insurance markets. Circulo plans to change that by bringing bold new approaches and Internet-scale technology to more than 75 million members who depend on Medicaid for their coverage.

Circulo will be built on Olive's technology platform that has been adopted by over 600 hospitals. Olive will provide automation, intelligence, network tools, and AI co-worker technologies to Circulo as they build the Medicaid insurance company of the future.

Drive Capital, General Catalyst, Oak HC/FT, and SVB Capital are all investors in Olive and have joined together to fill out Circulo's large inaugural equity financing. They also return as backers of Sean Lane who will serve as CEO of both Olive and Circulo. Sean, an ex-NSA intelligence officer turned entrepreneur, is Olive's founder and CEO and has led the company to a $1.5B valuation in the company's last financing, while growing the workforce to over 550 employees. "We're excited to invest in Circulo's vision for Medicaid and to help create another important insurance company from the ground up here in Columbus," commented Chris Olsen, co-founder of Drive Capital.

"Circulo is going to use Olive's unique platform to build the Medicaid insurance company of the future from scratch, right here in Columbus, Ohio - the emerging insurtech capital of the U.S." said Sean Lane, CEO of Circulo and Olive. "There's no better place to build and grow a high-tech insurance company and there's no better mission than to do it to serve the country's most underserved population."

Circulo plans to add dozens of new roles immediately. To learn more about joining the Circulo team, contact readytoserve@circulohealth.com.

About Circulo
Circulo is building the Medicaid insurance company of the future to provide tech-enabled, world-class care to the nation's sickest and poorest populations. Circulo is based in Columbus, Ohio, the emerging insurtech capital of the U.S. Check us out on LinkedIn.

About Drive Capital
Drive Capital is a Columbus-based venture capital firm that is focused on investing in the world's next generation of market-defining companies. The firm started in 2013 and raised over $1B of funds to invest in startups solving problems in large markets. Drive is an investor in more than 40 companies outside of Silicon Valley, including Root Insurance, Duolingo, and Branch.

About General Catalyst
General Catalyst is a venture capital firm that invests in powerful, positive change that endures — for our entrepreneurs, our investors, our people, and society.  We support founders with a long-term view who challenge the status quo, partnering with them from seed to growth stage and beyond to build companies that withstand the test of time. With offices in San Francisco, Palo Alto, New York City, and Boston, the firm has helped support the growth of businesses such as: Airbnb, Deliveroo, Guild, Gusto, Hubspot, Illumio, Livongo, Oscar, Snap, Stripe, and Warby Parker. For more: generalcatalyst.com.

About Oak HC/FT
Founded in 2014, Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services ("HC") and Financial Services Technology ("FT"). With $1.9 billion in assets under management, we are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders. Oak HC/FT is headquartered in Greenwich, CT, with offices in Boston and San Francisco. Follow Oak HC/FT on Twitter, LinkedIn, and Medium.

About SVB Capital
For more than 35 years, SVB Financial Group (NASDAQ: SIVB) and its subsidiaries have helped innovative companies and their investors move bold ideas forward, fast. SVB Financial Group's businesses, including Silicon Valley Bank, offer commercial, investment and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life sciences and healthcare, private equity and venture capital and premium wine industries. Headquartered in Santa Clara, California, SVB Financial Group operates in centers of innovation around the world. Learn more at svb.com.

Media Contact:
Mike Renn
mike@circulohealth.com

 

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SOURCE Circulo

FAQ

What is Circulo's funding announcement for 2021?

Circulo announced securing $50 million to innovate Medicaid Managed Care.

Who are Circulo's investors?

Investors include Drive Capital, General Catalyst, Oak HC/FT, and SVB Capital.

How will Circulo disrupt the Medicaid market?

Circulo plans to utilize advanced technology from Olive to transform Medicaid services.

Where is Circulo based?

Circulo is based in Columbus, Ohio.

What technology platform will Circulo use?

Circulo will use Olive's technology platform for its operations.