Cigna Starts $250 Million Venture Fund to Make Health-Care Bets

  • Investment arm will receive $250 million in funds from Cigna
  • Health startups drawing high interest from range of investors

Signage is displayed in front of Cigna Corp. headquarters in Bloomfield, Connecticut.

Photographer: Michael Nagle/Bloomberg
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Cigna Corp. is launching a venture fund to invest in health-care startups, committing $250 million of its own capital.

Health insurers have been starting venture-capital arms to find new ideas to improve their businesses and generate financial returns. UnitedHealth Group Inc., the biggest health insurer, said in November that its Optum unit was creating a venture arm with $250 million in funds. Humana Inc., Kaiser Permanente, and a group of Blue Cross and Blue Shield insurers all have venture units.