Collective Health needs all the money in the world to revolutionize the health insurance industry. Kicking out the middleman costs a lot of money, but luckily for Collective, there are funds “out there” believing the market is ready for the big change. And they just poured out $38 million to help the company enable employers to directly provide health insurance coverage to their employees.

The round was led by Founders Fund and NEA (New Enterprise Associates), with participation from Formation 8, Redpoint Ventures, RRE Ventures, Subtraction Capital, and Rock Health.

San Mateo, California-based Collective Health allows employers to set up health services they want to cover for employees, while providing employees with an easy-to-use interface from where they can select what they need. It will use the capital to “meet the rapidly growing demand for its employer self-insurance platform.”

It was only in August 2014 when Collective has left the stealth mode. Right now, it’s only serving companies in California but the plan is to expand to (some) other states later this year.

[Via: VentureBeat]