Livongo Files for IPO with Morgan Stanley, Goldman Sachs, and JPMorgan as Underwriters, Set to Join Public Markets as a Leading Digital Diabetes Management Platform

VCBeat (WeChat ID: vcbeat) has learned that on March 7, 2019, digital health company Livongo announced its plan to conduct an initial public offering (IPO) in the third quarter of 2019. Recently, Livongo has engaged Morgan Stanley, Goldman Sachs Group Inc., and JPMorgan Chase & Co. as underwriters for its IPO.

Livongo was founded in 2014 and is headquartered in California, USA. It was established by Glen Tullman, former president of Allscripts. Under Glen Tullman’s leadership, Livongo generated $60 million in revenue in 2018. The company’s revenue is projected to exceed $100 million in 2019 and double by 2020.

Livongo initially focused on providing patients with digital solutions for diabetes management, including blood glucose monitoring and professional coaching services. Currently, the company’s flagship product is Livongo for Diabetes, which comprises connected devices, a smart cloud platform, and a virtual care team. Livongo for Diabetes offers a color touchscreen device that integrates a connected glucometer and pedometer, enabling users to easily share their data.

Livongo strives to reduce barriers to device usage. For example, it provides blood glucose test strips free of charge and ensures that all stored data is easily accessible, eliminating the need for users to continuously log their current status.

In recent years, Livongo has expanded its platform into chronic disease management areas such as diabetes prevention, behavioral health, and hypertension through in-house technology development and the acquisition of companies like myStrength and Retrofit.

According to statistics, Livongo’s diabetes product has been adopted by four of the seven largest health plans in the United States and two of the three major pharmacy benefit managers, covering a user base of more than 3 million.

Since its inception, Livongo has been highly favored by investors. To date, the company has completed several rounds of financing, totaling approximately $250 million. These include: a $300,000 seed round in November 2013; a $10 million Series A round led by General Catalyst in September 2014; a $20 million Series B round led by Kleiner Perkins in April 2015; a $49.5 million Series C round in April 2016; a $52.5 million Series D round led by General Catalyst and Kinnevik AB in April 2017; and a $150 million Series E round led by General Catalyst and Kinnevik AB in April 2018. Among its investors are prominent firms with deep expertise in the healthcare industry, such as KPCB, Merck Global Health Innovation Fund, and Blue Cross Blue Shield of Massachusetts.

According to reports, Livongo’s valuation will exceed $1 billion following this IPO.

“I believe the best companies are always able to develop selectively,” said Glen Tullman, Chairman of Livongo. “We have options and ample cash in the bank; when management and the board both feel it is better for the company to go public, we will do so.”

Now it seems that the opportunity has arrived.

(Compiled by Tan Xin)