The venture capital investment arm of OMERS is boosting its presence in the benefits industry through its latest investment in Canadian technology startup League as it looks to move into the group benefits space.
“We’re big believers in the ability of League to become that true end-to-end digital health benefits platform,” says Sid Paquette, managing director of OMERS Ventures, of today’s announcement of the new round of financing for League.
OMERS Ventures is among several organizations that contributed US$25 million to League as part of the recent round of financing.
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OMERS saw potential in League from the beginning, after investing in its seed round in 2014. According to Paquette, League is an attractive investment opportunity.
“The market that League is attracting, which is a very small niche market to start with, is still a $30-billion opportunity,” he says. “From an opportunity perspective, it’s very compelling for us. Equally as important is the management team.”
League’s founder is entrepreneur and Kobo creator Michael Serbinis. He created League in 2014 after spotting an innovation gap in the traditional benefits industry. The mobile platform provides employers with access to workplace wellness services, health spending accounts and extended health insurance to offer their employees.
According to Serbinis, the latest funding will help League expand its offerings to include drug plans; a comprehensive package with life insurance, long-term disability, accidental death and dismemberment and critical illness coverage; employee assistance programs; and occupational health and safety.
Read: How League is rethinking traditional workplace health benefits
Leagues services are currently available in eight North American cities, including Toronto and Vancouver. With the latest round of funding, League plans to expand its services across Canada and potentially to Europe and Asia.
“We had four to five times more demand in this round than we were looking for,” says Serbinis. “This is a big market and a complex one, so we want the right mix of investors. We had to make tough choices on who to include and who to not include.”