BuildGroup, the first operator-led, permanent capital investment company for modern business models, announced today that it has expanded its investment offering to provide permanent capital to small-cap public software-as-a-service (SaaS) companies as well as growth-stage SaaS ventures with ambitions of joining the public markets.
BuildGroup recently announced its $80 million investment in Benefitfocus (NASDAQ:BNFT), a technology platform driving rapid innovation for employers, health plans and consumers. This is its first private investment in public equity—otherwise known as a PIPE. With more than 25 million users, Benefitfocus is helping to expand BuildGroup’s modern business model ecosystem of companies, consumers and industry partners.
“We have expanded our offering to target the intersection of two key market trends: the growing importance of modern business models and the critical need for public companies to access permanent private capital to thrive during economic volatility,” said Lanham Napier, co-founder and CEO, BuildGroup. “Modern business models use AI to build upon the recurring revenue of SaaS offerings with significant data assets and create multifaceted revenue streams from networks of buyers, sellers and partners. BuildGroup’s goal is to strategically invest in companies that embrace this modern business model and can benefit from our operational playbook and permanent capital.”
Benefitfocus, based in Charleston, South Carolina, provides a marketplace benefits platform that connects employers, insurance brokers, health plans and suppliers to simplify the benefits experience for employers and to improve the health and well-being of employees. The company is considering a range of potential uses for the investment funds, including reducing debt, repurchasing shares, focusing product investment that leverages artificial intelligence (AI) to create customized and consumer-focused market offerings, and exploring the viability of strategic acquisitions that solidify its market position as a leading technology provider.
“Benefitfocus is a shining example of a public company with the core elements of a modern business model that is dramatically transforming its strategy in order to positively impact the lives of its customers,” said Napier. “With this investment, BuildGroup is further expanding our diverse ecosystem, which includes more than 100 million end-users, 5,000 enterprise customers and 12,000 partners. As we continue to look for investment opportunities that can bring scale to this growing network, we are enhancing the resiliency of our portfolio and creating greater market opportunity for our partners.”
Based in Austin, Texas, BuildGroup invests in companies throughout North America. Leveraging data insights and predictive analytics, its emphasis on permanent capital investments gives the company and its portfolio firms the flexibility to build sustainable business models that facilitate exponential growth and value creation.
BuildGroup is the first operator-led, permanent capital investment company for modern business models. Headquartered in Austin, Texas, the firm invests in companies that include SaaS-based subscription revenues, significant data assets that leverage AI to create high volume and targeted offers, and multifaceted platforms that serve large, connected networks of buyers, sellers, users and partners. BuildGroup targets fast-growing private companies and small-cap public companies through PIPEs. For more information on BuildGroup, its investment strategy and portfolio companies, visit www.buildgroup.com.
Benefitfocus (NASDAQ: BNFT) unifies the entire U.S. benefits industry on a single technology platform to protect consumers’ health, wealth, property and lifestyle. Our powerful cloud-based software, data-driven insights and thoughtfully-designed services, enable employers, insurance brokers, carriers and suppliers to simplify the complexity of benefits administration and deliver a world-class benefits experience. Learn more at www.benefitfocus.com, LinkedIn and Twitter.