Oscar Health, the startup aiming to disrupt the healthcare market, announced Tuesday (March 27) that it has raised $165 million in a fresh round of fundraising led by Founders Fund.
In a blog post, Mario Schlosser and Joshua Kushner, co-founders of Oscar Health, said other investors to participate in the venture funding include 8VC, Verily Life Sciences, Fidelity, General Catalyst, Capital G, Khosla Ventures, and Thrive Capital, among others. Capital G and Verily Life Sciences are units of Google’s investment arm. The funding will be used to fuel the company’s next phase of growth. CNBC noted that with the capital, Oscar Health’s valuation goes to $3.2 billion from $2.7 billion in 2016.
“More than five years ago — long before today’s dizzying array of mergers and new entrants — we knew the only way to fix a broken health care system was to empower the consumer,” wrote the co-founders when announcing the latest fundraising. “We started Oscar to secure the trust of consumers, to use data science and technology to proactively guide them to the best and most affordable doctors, and to finally introduce choice, competition, and value to health care.” According to Schlosser and Kushner, the investment underscores its investors’ belief in its long-term vision of the healthcare startup. It said it generated an underwriting profit last year, enrolled close to 250,000 members and is projecting gross premium revenue of more than $1 billion. It said it has highly engaged members which are translating into better and easier care for thousands of people around the country.
“This infusion of capital will help us accelerate the pursuit of Oscar’s mission: giving consumers the kind of affordable, high-quality health care they deserve. Bolstered by new partnerships with industry leaders, such as Cleveland Clinic, Humana, and AXA, Oscar now has a proven, replicable growth playbook: secure competitive prices with new health systems, acquire and engage membership in significant volumes, build market share for our provider partners, and begin to drive health care costs down,” the co-founders said.