While healthcare is a top of mind concern for nearly every American today, affordable dental care is another issue that haunts millions. In fact, high costs contribute to only 36 percent of adults visiting the dentist yearly, according to Jake Winebaum, the CEO and founder of Brighter. This company aims to give patients a free alternative to costly dental insurance by contracting with a vetted group of dentists who have agreed to exclusive negotiated prices.
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On Tuesday, the company announced a $15 million Series C round led by Tenaya Capital with participation from existing investors Mayfield Fund and Benchmark Capital. “With our Series C funding, we will begin our expansion into other metropolitan cities outside of California starting in 2014,” Winebaum says. Additional cities should be announced soon. This round brings Brighter’s total funding to date to $28 million.
Launched in 2011, Brighter had strong financial backing from the start. On day one, the company had $5 million in the bank, and three months later, it raised another $8 million led by Benchmark. The reasons for this are twofold: First of all, Winebaum is an experienced entrepreneur who sold Business.com for $350 million back in 2007. The other part is that the dental insurance industry is ripe for disruption. Only 53 percent of Americans have dental insurance, and even for them routine checkups and procedures can be prohibitively costly.
Today, Brighter has a network of 600 Los Angeles-area dentists and thousands of customers. Pre-negotiated rates for more than 500 procedures can save customers up to 50 percent on dental costs, with preventative procedures such as cleanings discounted up to 70 percent. Custom profiles allay fears of subpar service — do you get what you pay for here? — by making clear the dentists’ education, credentials, office amenities, patient reviews, schedules and more. Most importantly, they compare uninsured rates to Brighter prices.
For Winebaum, a successful track record in Los Angeles meant it was the best place to stay on and start a new company. The wealth of local talent is a given, but what Winebaum loves is the personality and perseverance of the workforce here.
“I have found that LA is a more grounded market for startups,” Winebaum says. “There is less ‘groupthink’ or ‘herd mentality’ here. Companies stay more focused on their customers' needs rather than what all the other companies around them are doing.”
