A Brookfield based software company that could be a major player if federal health care reform announced today that it has received a $20 million funding boost from investors.
Brookfield-based Connecture, which provides web-based information systems used to create health insurance marketplaces and exchanges, announced today that Greenwich, Conn.-based Great Point Partners LLC has led a $20 million funding round in growth recapitalization of Connecture.
Existing investor Chrysalis Ventures also co-invested in the financing.
Great Point is a private investment firm focused on the health care industry.
Connecture said the investment will enable it to meet the demand from states for the creation of health insurance exchanges mandated by the Patient Protection and Affordable Care Act (PPACA), also called “Obamacare” by critics.
More than half of the nation’s 20 largest health insurance plans use Connecture’s technologies, and more than 25 million Americans shop for their health insurance on systems built by Connecture, according to the company.
“The Great Point team has the health care technology and payer sector domain expertise to complement and support our strategic vision as a company, which is to eliminate friction in the health insurance purchasing process,” said Doug Schneider, Connecture CEO. “This investment will enable Connecture to accelerate building out our capacity, and it will help states, brokers and health plans meet the deadlines associated with health care reform with the best information systems in the market.”
The recapitalization adds to Connecture’s board Great Point team members David Kroin, managing director; Adam Dolder, managing director; Charles Myers, senior vice president; and Brett Carlson, vice president, as well as Chrysalis venture partner Alan Ying. Schneider and board chair David A. Jones, Jr., who is Chrysalis’ chairman and managing director, continue to serve as directors.
