Sep 23, 2021 - Health

Devoted Health to be valued above $11 billion in new round

Illustration of a first aid bag filled with cash.  
Illustration: Aïda Amer/Axios

Devoted Health, a health insurance startup that focuses on Medicare Advantage plans, is raising up to $1.2 billion in new funding at around an $11.5 billion valuation, according to a Delaware stock authorization filing.

Why it matters: The Waltham, Massachusetts-based company serves around 40,000 seniors in four states, more than double from the first half of 2020, and wants to eventually become a nationwide provider.

Devoted reports a $27.2 million net loss on $247.3 million in revenue for the first half of 2021, according to insurance filings in Arizona, Florida, Ohio and Texas.

  • A company spokesman declined to comment.

History: Devoted, which was co-founded by former U.S. chief technology officer Todd Park, to date has raised around $820 million in funding, most recently last year at a $3.65 billion post-money valuation.

  • The Series D round shares would be valued at $56.25 apiece, more than triple the prior round's $17.71 per share price.
  • Existing shareholders include Andreessen Horowitz, Premji Invest, Uprising, Green Sands Equity and Artfo Holdings.

The Delaware filing was discovered by Prime Unicorn Index and shared with Axios.

Go deeper