Value-based care startups saw a remarkable fourfold increase in venture funding during the pandemic. This surge reflected a heightened recognition of the need for a healthcare system that prioritizes patient outcomes over volume.

I have always been bullish on tech-enabled services. Technology should serve not to replace, but to enhance the care element of healthcare. It should act as an enabler rather than a disruptor of quality, affordable care.

In a previous article, What Is Value-Based Care (VBC) and Why Does It Matter to Digital Health Startups?, I did an introduction to the concept of value-based care, and why it matters to digital health startups. In this piece, I’ll share some of the largest, most exciting value-based care startups today.

Devoted Health

Devoted Health is a “payvider” combining Medicare Advantage plans with in-person and virtual care.

Raised: $2.14 billion
Backers: GreatPoint Ventures, Socium Ventures, Emerson Collective, The Private Shares Fund, F-Prime Capital Partners, Maverick Ventures, Andreessen Horowitz, General Catalyst
Valuation: $12.9 billion
Founded: 2017
Founders: Brothers Ed & Todd Park

Cityblock Health

Cityblock provides value-based primary care, behavioral care, and social services focused on the Medicaid and dually eligible population.

Raised: $900 million
Backers: SoftBank, Tiger Global, Maverick Ventures, General Catalyst, Wellington Management, Thrive Capital, Redpoint Ventures, Echo Health Ventures, 8VC (I am an angel investor in Cityblock)
Valuation: $6.3 billion
Founded: 2017
Founders: Toyin Ajayi, MD, MPhil, Iyah Romm, and Bay Gross

Aledade

Aledade is the largest network of independent primary care in the country. With more than 1,500 practices, Aledade shares in the risk and reward across more than 150 value-based contracts representing more than two million patient lives under management.

Raised: $429 million
Backers: Venrock, Lightspeed Venture Partners, Avidity Partners, OMERS Growth Equity, Fidelity Management & Research Company, Meritech Capital, Tiger Global
Valuation: $3.5 billion
Founded: 2017
Founders: Farzad Mostashari, MD, Mat Kendall

Main Street Health

Main Street Health is a value-based healthcare company focused exclusively on serving rural America.

Raised: $342 million
Backers: UnitedHealthcare, Humana, CVS Health, Elevance, Echo ealth Ventures, Oak HC/FT
Valuation: $1.5 billion
Founded: 2020
Founder: Brad Smith

Strive Health

Strive Health is a value-based kidney care solution for innovative healthcare payors and providers. Strive develops integrated kidney care systems that support the entire patient journey from chronic kidney disease (CKD) to end stage renal disease (ESRD).

Raised: $306 million
Backers: NEA, Town Hall Ventures, Ascension Ventures, Redpoint, Echo Ventures, CVS Health Ventures
Valuation: $1 billion+
Founded: 2018
Founder: Chris Riopelle

Crossover Health

Crossover Health delivers value-based hybrid care via Primary Health, a care model driven by an interdisciplinary team inclusive of primary care, physical medicine, mental health, health coaching and care navigation.

Raised: $292.76 million
Backers: Deerfield Management Company, OrbiMed Advisors, Foresite Capital, Avidity Partners
Valuation: $1 billion+
Founded: 2010
Founder: Scott Shreeve, MD

Wellvana

Wellvana serves independent physicians, specialists, health systems, and payors in 25 states and for more than 1,000 partner physicians.

Raised: $155 million
Backers: Heritage Group, Valtruis, Memorial Hermann Foundation
Founded: 2018
Founders: Charlie Martin and Devin Carty

Pearl Health

Pearl Health is a provider enablement and value-based care technology company serving independent primary care providers. Starting with Medicare's ACO REACH Model, Pearl Health supports independent primary care providers on their transition to value.

Raised: $100 million
Backers: Andreessen Horowitz's Growth Fund, Viking Global, AlleyCorp
Founded: 2020
Founder: Michael Kopko

Interwell Health

Interwell Health is a value-based kidney care management company. It’s the result of a three-way merger with Fresenius Health Partners and Cricket Health in 2022. Through its nephrology network of more than 1,600 physicians, InterWell Health manages kidney patients under at-risk arrangements with public and private payors across the full continuum of chronic kidney disease, transplant, end stage kidney disease, and conservative care.

Raised: n/a
Backers: Valtruis, Oak HC/FT, Cigna Ventures, and 1,100 physician investors (I am also an investor)
Valuation: $2.4 billion
Founded: 2022 (year of merger)
Founder: Robert Sepucha (CEO)

agilon health

agilon health (yes, the a and h are lowercase) provides value-based care tools for primary-care physicians serving seniors.

Raised: n/a
Backers: Publicly traded
Valuation: $650 million
Founded: 2016
Founder: Ron Williams

Meet 10 of the Largest Value-Based Care Startups