Major New Investors Include Goldman Sachs, Dell Computer, & The Sprout Group;
Kleiner Perkins Caulfield & Byers, and Weiss, Peck & Greer Venture Partners Make Significant Additional Investments
Sunnyvale, CA January 11, 2000 – eHealthInsurance.com (www.ehealthinsurance.com), the #1 place for purchasing health insurance online, closed its second round financing totaling $42 million, the company announced today. New investors Goldman Sachs (NYSE: GS), Dell Computer (NYSE: DELL), and The Sprout Group, the venture capital affiliate of Donaldson, Lufkin & Jenrette (DLJ) (NYSE: DLJ), join an impressive list of existing financiers who include Kleiner Perkins Caulfield & Byers and Weiss, Peck & Greer Venture Partners.
eHealthInsurance.com will use the new financing to expand its selection of health insurance options to address a broader category of individual consumers, small businesses, and seniors. The funding will be used to build brand awareness through new and intensified marketing and advertising campaigns, and to further expand the company’s operations and staffing at all levels.
“Receiving funding from such a respected group of firms reinforces our leadership position in the online health insurance market,” said Vip Patel, founder and chairman of eHealthInsurance.com. “Since launching our service one year ago, eHealthInsurance.com has made rapid strides including a national marketing agreement with the Blue Cross Blue Shield Association and the ability to provide instant pre-approval to qualified applicants. With this round of funding, we intend to intensify our current successful programs and kick off aggressive marketing and strategic alliance initiatives.”
“Our research in the eHealth market has confirmed eHealthInsurance.com’s position as one of the category leaders in both the business to consumer and the business to business segments of online health insurance,” said Randall Blumenthal, Managing Director, Goldman Sachs. “Our investment in eHealthInsurance.com reflects our belief in supporting the true leaders of Internet commerce.”
eHealthInsurance.com has established itself as the #1 place to purchase health insurance online. The company delivers the best customer experience for buying health insurance by offering the broadest selection of leading health plans, delivering unparalleled customer service through licensed agents, and guaranteeing the best price. eHealthInsurance.com allows people to learn that health insurance is affordable and attainable.
Founded in 1997, eHealthInsurance.com (www.ehealthinsurance.com) is the #1 place for purchasing health insurance online. Its technology was responsible for the nation’s first Internet-based sale of a health insurance policy. eHealthInsurance.com is funded by Dell Computer, Goldman Sachs, Kleiner Perkins Caufield & Byers, The Sprout Group, and Weiss, Peck & Greer Venture Partners. The management team and board include former or current executives of Healtheon, Pacificare, Foundation Health, Aetna, United Healthcare, Lincoln National, MetLife and other companies in the field.
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