.jpg){kind=avatar}
Oscar, the New York based health insurance startup, raised a $400m venture round, led by Fidelity. The round values the company at $2.7b. That’s up $1b from its $1.7b valuation in Sept 2015. Deep pocketed VCs including Google Capital, General Catalyst, Founders Fund, Lakestar, Khosla Ventures, and Thrive Capital also participated in the round.
Oscar has grown quickly over the last year–expanding from its base in New York to California, New Jersey and Texas. The move has more than tripled customers to 145,000 up from 40,000. Sources say Oscar makes an average of $5,000 per customer annually, which would put revenue near $750 million. But costs have surged. In 2015, Oscar lost $120 million, split fairly evenly between medical bills and growth in operating costs. “About $60 million comes out of New York medical losses and $60 million from us being a start up of engineers and product managers going into new states,” says Oscar CEO Mario Schlosser. “We expect to go into three or four new states per year and each will cost us about $20 million to start up.”
unknownx500
