A Toronto startup that aims to help small businesses offer health insurance has raised a $25 million series A funding round from one of Canada’s largest investment firms.
League, which holds its U.S. headquarters in Seattle, said Omers Ventures led its funding round, with participation from many other firms including Infinite Potential Technologies, Real Ventures and BDC IT Venture Fund.
League launched in Toronto, Seattle and Vancouver B.C. last year and offers a service that connects employees with health and wellness providers, and manages flexible spending accounts with employers.
Businesses can sign up for different health plans and set an annual spend amount per employee. League helps manage the accounts and finances behind the plans.
League plans to use the funding to grow its team and expand to more cities in the U.S.
League offers in a similar space, though in a different position, as embattled Silicon Valley startup Zenefits. The company ran into regulatory issues, including claims it used unlicensed brokers to sell insurance. It said this week it would lay off 106 people in addition to the 250-person layoff it announced earlier this year.
League does not act as a broker, but rather as a product, CEO Michael Serbinis told the Financial Post in Canada.