Health Insurance Disruptor Oscar Secures $150M in New Funding, Valuation Hits $3B Ahead of IPO

According to VCBeat, Oscar Health is currently raising a new round of financing of no less than $150 million. If this round is successfully completed, Oscar Health’s valuation will reach $3 billion.

As an emerging insurance company with a strong technological background, Oscar has completed $365 million in financing, including a $32.5 million investment from Google Capital last autumn and a $145 million funding round closed last spring.



This funding round was led by Peter Thiel and Brian Singerman from Founders Fund, with other participants including Li Ka-shing of Horizons Ventures, Wellington Management Company, and Goldman Sachs. Khosla Ventures and General Catalyst had also previously invested in Oscar Health.

Although major players have already captured half of the insurance market, Oscar Health, as a new entrant, is actively crafting a novel user experience, encouraging proactive user engagement, and integrating digital health technologies into traditional insurance models, thereby successfully implementing a differentiation strategy. Previously, Oscar Health partnered with Teladoc to provide telemedicine services to its members.

In December 2014, the company also expanded its product offerings into wearable devices. Oscar partnered with Misfit to make wearable technology more accessible to a broader audience. As part of the collaboration agreement, every Oscar member received a free Misfit Flash activity tracker. Additionally, members had the opportunity to earn a $20 Amazon gift card upon achieving step goals set by Misfit.

This partnership means that Misfit’s wearable devices will be widely adopted, appearing on the wrists of thousands of New Yorkers, while Oscar Health can leverage this collaboration to reduce healthcare costs for its members and continue to implement a differentiation strategy as an innovator in the insurance market.

Over the past year, Oscar has hired numerous new executives: Chief Operating Officer Kevin Campbell, formerly of Accenture; President and Chief Financial Officer Brian West, formerly of Nielsen; and Chief Policy and Strategy Officer Joel Klein, who previously served in the antitrust division of the U.S. Department of Justice under President Clinton.

Compiled by: Lü Siyang