Health

Three more digital health unicorns fired

Three more digital health unicorns, Cedar, LetsGetChecked and Forward, have been laid off as the industry continues to face macroeconomic headwinds.

Cedar, a New York-based medical payments technology company, said it was laying off 24% of its workforce of more than 500 people last Friday. Florian Otto, CEO of the company, said in a LinkedIn post that the move was prompted by the current market climate and the need for restructuring following the May 2021 acquisition of OODA Health for $425 million.

In March 2021, Cedar received a $200 million Series D funding round led by venture capital firm Tiger Global Management. The funding round raised the digital health company’s total valuation to $3.2 billion.

LetsGetChecked, a virtual testing and diagnostics company based in Dublin, Ireland, confirmed that the number of layoffs was not disclosed. The company, which reportedly employs more than 200 people, cited recent acquisitions of genomics startups Veritas Genetics and Veritas International, Veritas Genetics and Veritas International, and digital health platform company BioIQ as the main reason for layoffs.

In June 2021, LetsGetChecked received $150 million in a Series D funding round led by Casdin Capital. This funding round propelled the company’s valuation to over $1 billion. The company was founded in 2015 and has grown during COVID-19 with its home testing capabilities.

Forward, a San Francisco-based primary care startup that operates high-tech clinics in 25 cities, reportedly laid off 5% of its workforce on Monday. The company cited market conditions as the reason for the cut, according to an initial report from Ferocious healthcare. The forward did not respond to a request for comment.

Forward received $225 million in Series D funding in March 2021 led by SoftBank Vision Fund 2 and the Peter Thiel Founders Fund. The company was valued at over $1 billion during the funding round.

These layoffs come as digital health funding has declined from 2021 highs. The latest quarter was the lowest in two years, according to the data. Business and technology of digital health data. Investors are increasingly advising portfolio companies to keep profitability in mind.

“Over the past few years, a growth mentality has developed at all costs and not worried about burning money,” said John Ryan, managing partner at Wells Fargo Strategic Capital. “We are trying to focus our companies on continuing to grow, but do so with profitability and cash in mind.”

OncoHealth, oncology digital health company, recently received a strategic investment from Arsenal Capital Partners and McKesson Corporation. CEO Rick Dean said the company has an experienced management team that has experienced crises and is therefore confident in its strategy to maintain a financially responsible growth regime.

“You had a lot of companies that were getting higher scores because of negative EBIDTA results and the motto was ‘grow, grow, grow’, and now the motto for some of those organizations is ‘downsize, downsize, downsize’,” Dean said. . said.

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Other notable recent digital health layoffs include:

Cerebrala mental health startup based in San Francisco, fired at the end of June. The company said it was restructuring its operations and eliminating a number of positions, although it did not specify how many. In December 2021, Cerebral received a $300 million funding round, bringing its valuation to almost $5 billion. He is dealing with several controversies, including multiple investigations into his business practices by the federal government.

carbon healthwhich combines traditional traditional clinics and telemedicine, cut 8% of its workforce, which corresponds to 250 employees. Carbon CEO Eren Bali cited volatile capital markets as the reason for the layoffs. San Francisco-based Carbon received a $350 million Series D funding round in July 2021, led by platform Blackstone Horizon, which valued the company at $3 billion.

cue healtha virtual testing company based in San Diego, California, 170 people laid off in light of economic hardships and reduced funding for COVID-19 testing. In September 2021, the company went public in a $200 million initial public offering that opened at $16.76 per share. As of Monday afternoon, Cue’s Nasdaq share price was $3.37.

Ro, a direct-to-consumer telemedicine company based in New York, laid off 18% of its 750 employees at the end of June. The company cited the economic downturn as the main reason for layoffs. In March 2021, the company received a major funding round of $500 million, valued at over $7 billion.

Troupill, a digital pharmaceutical company based in San Mateo, California, laid off 15% of its workforce in early June, which is about 150 employees. Sid Viswanathan, CEO of the company, said the company is adjusting its financial strategy to fit the broader economic climate. In October 2021, Truepill received a $142 million Series D funding round, bringing its valuation to $1.6 billion.

This story first appeared in Business and technology of digital health.


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