Oscar Health Raises $140M in Pre-IPO Funding

Oscar, a health insurance company founded in New York City and a leader in the surge of venture capital investments within the healthcare sector following the Affordable Care Act, has secured an additional $140 million in funding.

This latest investment brings Oscar’s total funding for 2020 to the equivalent of $1 million raised each day throughout the year.

The company’s previous funding round, which generated $225 million, occurred just months prior in June.

Considering the investors involved in this round – spearheaded by Tiger Global Management and also featuring Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla Ventures, Lakestar, and Reinvent – it is probable that this will be one of the final times Oscar seeks funding from private investors before pursuing an initial public offering.

“Oscar has experienced over 70% annual growth in membership since 2017,” stated Mario Schlosser, co-founder and CEO of Oscar, in a recent announcement. “This funding will enable us to continue expanding our operations and fulfill our pledge to provide accessible and affordable healthcare to a growing number of Oscar members nationwide.”

As the new year begins, the company plans to operate in 18 states and 286 counties, offering its Individual and Family Plans, Medicare Advantage, and Small group products. As of September 30, 2020, Oscar reported approximately 420,000 members across 15 states.

Oscar was an early adopter of virtual care options, introducing this service as early as 2014. Currently, almost half of all Oscar member visits to a primary care physician are conducted with a doctor recommended by Oscar. Approximately 38% of the company’s members with one or more medical visits utilize Oscar’s virtual care services.