The Windy City Blows More Cash Into Bloom Health


Bloom Health Minneapolis-based Bloom Health has raised a $7.5m series B equity round from Chicago’s BC/BS Venture Partners and Sandbox Industries according to an SEC doc filed last week.

The funding comes one year after an initial $5m investment from the same investors. A spokesperson from Bloom also notes one “anonymous partner” was involved in the new round.

Bloom Health operates in the business of helping employers, employees and individuals “take control of their health benefits” by acting as a virtual matchmaker.  Using a defined contribution approach, the firm does two things:

“One, we help employers define and control their health benefits spending. Two, we help employees and individuals spend their health benefits dollars wisely.”

The startup is led by veteran health/tech entrepreneur Abir Sen, known for co-founding Definity Health in ’98 before eventually selling for $300m to United Health Group in 2004. Post Definity, he co-founded RedBrick Health in 2006 and left to launch Bloom in 2009.

Accordingly, the company is staffing up in sales, operations, development and account management; specific positions for Operations Analyst Lead, Account Specialist and Software Engineer are currently posted on the corporate website. Five local customers were announced in August, including Anderson Companies and NE Minneapolis software design and development firm Refactr. The company says “a total of 23 clients are live or in implementation for a Jan 1st start date.”

In addition to it’s own portfolio (including Excelerate Labs), Sandbox Industries manages the $116-million BlueCross BlueShield Venture Fund — intended for strategic investments in technologies, products, and services in the healthcare industry, including:  health IT, informatics, health programs, consumer-driven solution, administration/back office and product extensions.  Pharmaceuticals, hospitals and medical device companies need not apply.