Oscar

NY based healthcare startup Oscar has now gotten a $375 million investment from tech giant Alphabet boosting the total raised by Oscar notable for its health insurance product offerings to about $1.3 Billion across several rounds.

Notably founded by a team consisting of its current CEO Mario Schlosser, Kevin Nazemi and Joshua Kusher (brother of Jared), Oscar has grown to a very good position since its founding 5 years ago garnering backing from the likes of Khosla Ventures, 8VC, Fidelity, General Catalyst, Breyer Capital, Thrive Capital, Goldman Sachs, Stanley Druckenmiller and several notable names, Oscar has grown from just from offering its service to individuals to several business offerings for the healthcare industry.

The New York based startup last raised $165 million prior to this round March this year at a valuation around $3 Billion which remains similar to this one while giving Alphabet a roughly 10% stake in Oscar.

Longtime Google executive and former YouTube CEO Salar Kamangar would be joining Oscar’s board representing Alphabet as part of this investment.

In a new Wired Interview, Oscar’s CEO Mario Schlosser stated “We’re humbled that Alphabet’s coming in. We raised our first round of funding from Capital G three years ago and since then they’ve been following us closely, seeing what we’ve been building, and Alphabet has come to the conclusion that they want to put more behind the company.”

Continuing “It’s fantastic for us because it will really allow us to focus fully on the core model we’ve been building for the past six years, which is: use technology, use data, use design, use a human approach to build a very different health care experience. And that’s what this allows us to do.”

 “We weren’t out there trying to raise additional money. We raised a round a couple of months ago. But Alphabet has just been talking to us for the past three years, and it took them awhile to get to the point where they really said, “This is something we believe in and want to put more money behind.”

Google being a major player in the data space would stand as a strategic partner for Oscar as its parent company Alphabet joins hands with the company to make use of in-depth healthcare data to tap into what has been a quite confusing and not yet fully harnessed industry.

Previous reports have put Oscar as expecting to generate $1 Billion in revenue and 250,000 additional members this year which stands as a very good feat for the innovative health insurance startup.

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