Devoted Well being is after its most bold enterprise spherical but, with the Waltham, Massachusetts-based insurtech in search of to lift one other $1.2 billion on a valuation of $11.5 billion.
The corporate’s board has licensed Devoted Well being to pursue a Collection D spherical, in response to a Delaware inventory authorization submitting that was first reported by Axios.
Prime Unicorn Index didn’t reply to an interview request. Devoted Well being declined to remark.
The four-year-old startup counts 40,000 Medicare Benefit members in 4 states, greater than doubling its senior members year-over-year and with its ambitions set on changing into a nationwide supplier. It has thus far raised a mixed $812 million over 4 enterprise rounds, with traders together with Oak HC/FT, Andressen Horowitz, Rebellion Ventures and others, in response to Crunchbase. Its subsequent funding would worth its shares at $56.25 every, greater than triple its most up-to-date Collection C spherical’s $17.71 worth. The corporate was began by Todd Park, who served as chief expertise officer for the U.S. beneath the Biden administration.
Obtain Fashionable Healthcare’s app to remain knowledgeable when business information breaks.
Devoted Well being represents the final of a gaggle of enormous insurtechs that haven’t gone public. If the corporate raises the $1.2 billion it needs, it should maintain the most important valuation—and inventory worth— among the many different insurance coverage upstarts.
In June, Minneapolis-based Shiny Well being Group raised $924 million on a valuation of $11.2 billion; in March, Medicare Benefit startup Orange, California-based Alignment Healthcare raised $391 million on a valuation of $3.3 billion; the identical month, New York-based Oscar Well being raised $1.2 billion on a valuation of $7 billion; and in the beginning of the yr, Nashville-based Clover Well being went public by way of special-purpose acquisition firm merger on a valuation of $3.7 billion.
Inventory costs for practically all of those corporations have fallen since their public debuts. Alignment Healthcare’s share worth has remained primarily flat.
Whereas these venture-backed well being plans are gaining momentum, they symbolize simply 1% of whole Medicare Benefit enrollment, with the market persevering with to be dominated by UnitedHealth Group, Humana, CVS and different legacy gamers in response to The Chartis Group. However the potential of the rising and profitable Medicare Benefit market continues to draw new market entrants.
At the very least three new venture-backed plans entered the market in 2021. Westminster, California-based Intelligent Care Well being Plan, which has raised $103 million; Charlotte, North Carolina-based Troy Medicare, which has raised $21.3 million; and Chicago-based Zing Well being, which has raised an undisclosed quantity of funding, all entered the fray.