O'Melveny Represents Castlight Health in US$60 Million Series C FundingJune 11, 2010
FOR IMMEDIATE RELEASE
O'Melveny & Myers LLP
O'Melveny & Myers LLP
SILICON VALLEY, CALIFORNIA ─ JUNE 11, 2010 ─ O’Melveny & Myers LLP represented Castlight Health, the first company to empower consumers with information to effectively navigate the health care system, in raising US$60 million in Series C funding. The round saw new investors including Morgan Stanley Investment Management, The Welcome Trust, US Venture Partners, and Cleveland, in addition to Maverick Capital, Oak Investment Patners, and Venrock as existing investors.
The Silicon Valley deal team was led by partner Sam Zucker, counsel Jennifer DePalma, and associate Ruchun Ji.
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The following press release was recently issued by Castlight Health:
Castlight Health Raises $60 Million to Support Commercial Rollout
SaaS-Based Price Transparency Offering Creates Informed Health Care Consumers
SAN FRANCISCO – June 11, 2010 – 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.
“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.”
About Castlight Health:
Castlight Health (formerly Ventana Health Services) was founded in 2008 to empower consumers with the knowledge to make informed health care shopping decisions. The rising cost of health care has put an increased burden on the consumer, while visibility into health care pricing and quality has remained elusive. Castlight Health offers companies a hosted software tool that provides employees with personalized views of their medical benefits and the costs associated with medical procedures. Castlight Health is headquartered in San Francisco and backed by prominent investors, including Venrock, Oak Investment Partners, Maverick Capital, Morgan Stanley Investment Management, The Wellcome Trust, The Cleveland Clinic, and U.S. Venture Partners. For more information, see http://www.castlighthealth.com/.