Oscar is the tech-based health insurance company founded by Josh Kushner (Thrive Capital). The company raised a healthy $80 million Series-A earlier this year at a valuation of $800 million.
The company has more than 16,000 customers who pay an average of $4,500 in annual fees—placing Oscar’s revenue at around $72 million. With a valuation of $800 million, investors are putting a frothy 11x sales multiple on the company.
It’s mid-December, which means Oscar, a Web-savvy health insurance startup backed by $150 million in venture capital, is back in business. Health insurance can only be sold during “open enrollment” periods. Oscar, which launched last July, has been waiting all year for this moment. The company’s cheeky cartoon advertisements are once again plastered all over New York City’s subway platforms. CEO Mario Schlosser is happy to finally be able to sell. The company started this year’s enrollment period with 17,000 members and grew to “way more than that” in the first week, he says. That represents around $85 million in annual revenue from health insurance premiums, which he says equals “a few hundred million dollars in actual health care spend.”