SAN MATEO, Calif., April 11 /PRNewswire/ -- BENU, a company offering a unique health care cost management solution to mid-size employers, closed a $7M round of financing led by Essex Woodlands Health Ventures (Essex Woodlands), a leading health care venture capital firm. BENU’s largest shareholder, New Enterprise Associates, (NEA) also participated in the financing.
BENU has pioneered a proprietary risk-based Premium Adjustment Method, which enables multiple carriers to offer a variety of benefit plans to mid- size employers and their employees. BENU ensures that the carriers are paid appropriately for the risk of the member that enrolls in their plan.
“BENU’s important breakthrough allows employers the opportunity to provide a competitive choice of carriers, benefit plans and prices to their employees while still controlling company costs through a fixed dollar contribution plan,” says Mark Pacala, Managing Director at Essex Woodlands, who has joined BENU’s Board of Directors. “It gives employees the opportunity to make decisions about what best suits their individual health and financial needs. BENU’s Premium Adjustment Method allows carriers to compete on a level playing field for members, providing true competition and increased consumer involvement.”
“BENU will use these funds for sales and marketing efforts to drive growth in new and existing markets, enhance the customer experience and develop related products and services,” says Jeffrey M. Closs, President and Chief Executive Officer, BENU, Inc. “We will invest in efforts that show how our innovative solution can address the health care cost problems facing mid-size companies. We appreciate the confidence our investors show in us and welcome them to the BENU team.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, any securities of BENU.
About BENU
Headquartered in San Mateo, CA, BENU, working with leading local and national health plans, provides mid-size employers in Washington, Oregon, Virginia, Maryland and Washington D.C. with accessible and affordable health plan choices typically found in large companies. Additional markets are planned for 2005. The cornerstone of BENU’s strategy is a proprietary risk- based Premium Adjustment Method that minimizes concerns about adverse selection. By allowing employers to set fixed dollar contributions, it provides them the stability of a defined contribution plan with predictable costs. It also removes the complexity of offering multiple carriers and plans, by providing a single point of contact for carriers, employers and employees for benefits administration.
For more information about BENU, call 1-800-630-2368 or visit http://www.benu.com/.
About Essex Woodlands Health Ventures
Essex Woodlands was founded in 1985 when it raised its first fund, Essex Venture Partners Fund I. Since that time, the Partnership has raised five additional funds and has managed approximately $1 billion in private equity investments. The team is comprised of 13 professionals with principal offices in Illinois, Texas and California. The Essex Woodlands team has been involved in the founding, investing, and/or management of over 100 healthcare companies ranging across all sectors, stages and geography, and brings over 240 years of collective healthcare experience. The Partnership leverages this collective experience with an investment approach that has evolved over 20 years of successful healthcare investing.
About New Enterprise Associates
New Enterprise Associates (NEA) is a leading venture capital firm focused on helping entrepreneurs create and build major new enterprises that use technology to improve the way we live, work and play. Since its founding in 1978, the firm has followed the same basic principles: support their entrepreneurs, provide an excellent return to their limited partners and practice their profession with high standards and respect. Practicing classic venture capital for over 25 years, NEA focuses on early stage investments, playing an active role in assisting management to build companies of lasting value. With $6 billion under management, NEA’s experienced management team has invested in over 500 companies, of which more than 145 have gone public and more than 190 have been acquired.
BENU, Inc.
CONTACT: Andrea Eastman, BENU, Inc., +1-650-345-8330 ext 214
Web site: http://www.benu.com/