Castlight Health raises $60M in Series C funding

Castlight Health, the first company to empower consumers with information to effectively navigate the health care system, today announced that it has raised $60 million in Series C funding. The round included new investors Morgan Stanley Investment Management, The Wellcome Trust, U.S. Venture Partners, and Cleveland Clinic, as well as existing investors Maverick Capital, Oak Investment Partners and Venrock. The funding will be used to accelerate hiring and further product development in order to serve Castlight Health's initial customers.

“Understanding the health care system is a daunting task”

"The continued dramatic rise in health care costs has propelled consumer financial responsibility for medical care as companies seek to rein in benefit expense growth. However, this increased burden on individuals is currently accompanied by a total absence of tools with which to make informed decisions," said Giovanni Colella, MD, co-founder and CEO of Castlight Health. "Even the most educated person has no idea how much a given medical procedure or appointment will cost them because there is no information available. In fact, the physician providing the service usually can't even tell you. We're dedicated to solving this problem."

"Understanding the health care system is a daunting task," said David Singer, partner at Maverick Capital, which led the round. "The strength of this team, combined with the power of their vision, makes Castlight Health an exciting venture with tremendous potential. They are addressing one of the top issues facing the United States today."

Delivered as a Web-based service, Castlight Health is working with companies to provide employees with individual level views of their health care benefits and costs. This granular detail enables employees to become informed consumers and shop for health care services by revealing out-of-pocket costs, alerting users about cost saving opportunities, as well as offering additional information about physicians and procedures.

"The drive toward patient responsibility in health care combined with the complete lack of information to support that transition has landed Castlight Health in the middle of the perfect storm," said Bryan Roberts, partner at Venrock and co-founder of Castlight Health. "The company is empowering individuals to take control of their health care expenses - something that has eluded this country to date. This is a huge market, with extraordinary and palpable customer demand."