Apr 14, 2017

How investors view those health care startup valuations

The valuations of many health care startups have ballooned to the point where people wouldn't invest in them now, according to a survey from the venture capital firm Venrock.

Data: Venrock 2017 Healthcare Prognosis; Chart: Andrew Witherspoon / Axios

  • Oscar, the young health insurer based in New York, fared the worst in the survey. Just 7% of respondents said they would invest in Oscar and its valuation that hovers near $3 billion.
  • Oscar advocates weren't thrilled with the survey. Brian Singerman — a partner at the Founders Fund, which has invested heavily in Oscar — sent this statement to Axios: "There's a reason that venture investing is done with real dollars, and not anonymous surveys. Oscar is well-positioned to succeed in the long term, and the team has the full confidence of their investors."
  • Nuna (a Medicaid analytics company) and Clover Health (the Medicare Advantage startup we reported on yesterday) didn't do much better, with only 17% saying they would invest in either company.
  • Doctor on Demand, a telemedicine startup, had the most support. Roughly 42% of Venrock's survey respondents would invest in the company, valued at the relatively bargain price of $250 million. Telemedicine is one of those ideas that most people get behind.
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