To say it’s an exciting time at League would be a bit of an understatement. Although it often feels like we just started this journey, I’m thrilled to announce our Series B investment raise to the world.
We have raised $62M – led by a strategic healthcare syndicate including Telus Ventures and Whittington Investments (an investment arm of Loblaw, Shoppers Drug Mart), along with our existing group of investors – OMERs, Infinite Potential, RBC, BDC, and Real Ventures.
This is an absolutely unprecedented syndicate in healthcare that gives us the capital, strategic assets, and access (to a massive user base) that we’ll need to take giant leaps forward in the next few years.
And frankly, anytime a group of expert investors gives you $62 million dollars – you know your mission is resonating. For us, that mission has always been about the future of healthcare, and empowering people with their health everyday.
So, what will this new investment allow us to do?
- Grow our business? Check.
- Continue to advance our category-defining benefits platform? Definitely.
- Keep moving up market and win massive new clients? Absolutely.
- Take League to Europe and beyond? Already in the works.
- Introduce innovative new business models? Stay tuned…
Why do our investors believe in us?
To put it simply, our investors see the same opportunity we do – a trillion dollar health insurance market that is desperately in need of transformation. A need that is driven by rising costs and a fundamentally changing demographic base.
Today’s consumer wants something new and different. Today’s employer wants to manage costs while competing to win in the competition for talent. This is a massive opportunity for a new kind of software platform.
Here’s what we know
What we learned very early on is that when employees think about health care, they instinctively think about their health insurance. So we dug in. When it comes to traditional benefits, we also know they’re costing employers more every year.
Yet employees tend to get less benefits each year, and are usually frustrated by the overall experience. This is not a great conversation for CEOs, CFOs and CHROs. Decreasing value for an increasing investment – Ugh?
All this comes with a backdrop of low unemployment, massive competition for talent, rising costs of chronic disease, and a new Netflix generation that wants a fundamentally different employee experience.
This new experience means more than a nice app. It means new kinds of benefits – personalized to each individual to empower them to be their best from enrollment all the way to day-to-day use.
For employers, it means turning their investment in health benefits into the cornerstone of their employee experience, and a strategic weapon. For us, this is a massive opportunity that we see extending beyond health benefits to all of total rewards.
So we built a superior platform for employers
League has built a digital health benefits platform for the modern workforce. It comes with a killer member experience that drives our industry leading engagement and satisfaction scores, and also an open architecture that provides financial products (like health insurance, retirement savings accounts, and rewards programs) from a growing list of providers.
Powering this is our “League benefits cloud” that connects to dozens of insurance and financial service providers, HRIS platforms, and payroll service providers. We provide these administrative services and it’s all done with one integrated, end-end platform. All of this works together to automate an employer’s backoffice.
And our members love it too
Our platform includes a universal digital wallet, a range of engaging health services, and real-time customer service. As a result, League is delivering a stratospheric 74 NPS (customer satisfaction) compared to a dismal industry average of 8. Our members just love the platform – probably because it reminds them of the experiences they get in their daily lives from companies like Uber, Instacart, and Netflix.
Three out of four League members use the platform monthly. Most are high frequency users, using League between 5-25 times per month. By being able to provide this previously unthinkable level of employee engagement, League is now on a path towards serving much larger organizations (like Unilever and Shopify) who want to ensure that their significant total rewards spends are both appreciated and competitive.
Where will this path lead us?
We’ll see, but there’s so much potential for how we could continue to empower our members. I can see a day where we’ll eventually be offering services like pharmacy integration, new personalized health programs, integrated diagnostics/lab testing, personal health records, and machine learning based recommendations.
With all of the excitement around cryptocurrency and blockchain, you can also imagine a world of new micro-benefit offerings geared toward each individual.
What we know for sure is that in order to reach our potential we have to continue to grow our footprint. After starting in just one province, we are now in 10 provinces and 50 states. But our opportunity extends well beyond North America.
We already have customers who will be taking us into the EU and UK next year. Multinationals have the desire to offer a single benefits experience no matter where their employees live – which is part of what makes League such an attractive option.
But to fund this growth we required additional capital. The question then became what type of partners should we look for? Traditional venture capital? Corporations? Institutional investors?
After considering term sheets from all of these groups, we eventually found ourselves inspired by the recent Amazon, Berkshire Hathaway, and JPMorgan partnership. That’s why we decided to form our own strategic healthcare syndicate by teaming up with Telus Ventures and Whittington Investments. The sky’s the limit.
The next chapter for League
There’s no doubt that this new raise is going to propel us towards a bright future. You’ll see us continue to hire in Chicago, New York, San Francisco, Toronto, and London (UK) as we grow rapidly. We’ll also be announcing some giant new customers over the next several months, as well as some exciting new partnerships.
We started League almost four years ago now, with a mission to empower people with their health everyday. We found a way to do that through the health benefits business, and a cloud based platform with an open architecture. While it’s a complex landscape, we’ve now laid a strong foundation to build on. With today’s Series B, we plan to accelerate building a phenomenal business and we will stop at nothing to achieve our mission.