Devoted Health Raises a Record $1.15 Billion Funding Round
Tech-enabled Medicare Advantage start-up Devoted Health closed a $1.15 billion funding round earlier this year led by Uprising and Softbank. Other Series D backers include returning investors Andreessen Horowitz, GIC, Premji Invest, Frist Cressey Ventures, Maverick, and NextView Ventures. New investors include General Catalyst, ICONIQ Growth, the Base10 Advancement Initiative and Emerson Collective. Rogue has been a long-standing investor in Devoted and has continued to support them in this round.
Devoted was founded in 2017 by brothers Todd and Ed Park, veterans of the electronic medical records company Athenahealth. The Park brothers recognized the blind spots in the US health insurance market, and launched Devoted with one simple goal: to dramatically improve the health and well-being of older Americans by caring for each and every person like they are literally family. Devoted Health aims to make “healthcare easier, more affordable, and a whole lot more caring”. To accomplish that mission, the Devoted team set out to build a next-generation company that puts members at the center of every decision and whose core product is better health. Devoted does this by combining Medicare Advantage coverage with its virtual and in-home care provider, Devoted Medical, as well as partnerships with leading providers. Devoted uses its software and data to try to make more informed decisions about the cost and delivery of care, acting as both insurer and provider. Members receive individually tailored care (both clinical and non-clinical) in the right place at the right time. As a result, Devoted is improving healthcare for countless senior American citizens. Ed Park, CEO of Devoted Health, stated that "we are literally saving, improving and extending lives for older Americans every day through our one-of-a-kind approach".
The company has been growing quickly and now has a presence in Arizona, Florida, Ohio, Texas, and Illinois. The company has been one of the fastest growing in the industry and boasts an extraordinary Net Promoter Score (a benchmark that demonstrates consumers’ satisfaction with a company). Typically, an NPS above 50% is considered excellent and above 75% is considered world-class. Devoted’s NPS is 79%, well-above the industry average of 15% and significantly higher than the likes of Apple, Netflix and Amazon. Demonstrating consumer satisfaction at this level for an insurance provider is unheard of and shows exactly how Devoted is building a model to take better care of their customers. The company plans to expand into further markets across the USA in 2022. “We are now ready to bring the Devoted Health experience to people nationwide” said Ed Park.
Devoted’s co-founders Todd Park and Ed Park are healthcare entrepreneurs with impressive backgrounds. They successfully exited their prior startup, Athenahealth, for $5.7 billion, after growing the company from a basement startup to a NASDAQ listed company with over a billion dollars in revenue. Todd Park is also a former member of the Department of Health and Human Services, as well as the former White House Chief Technology Officer under President Obama.