Total amount raised
$405.3 Millions
Latest funding date
11/01/2022
Location
Oak Street Health has successfully raised significant funding through multiple rounds, culminating in its acquisition by CVS Health for $10 billion. The company has attracted major investors, including Hercules Capital and Silicon Valley Bank, to support its growth and expansion.
Keep reading to explore the intricacies of Oak Street Health's fundraising journey and the investors backing this innovative healthcare provider.
What Is Oak Street Health?
Oak Street Health, founded in 2012, is a healthcare provider specializing in primary care for older adults on Medicare. Headquartered in Chicago, Illinois, the company was established by Geoff Price, Griffin Myers, and Mike Pykosz.
With a workforce of 101-250 employees, Oak Street Health operates numerous clinics across the United States. The company offers a range of services, including primary care, telehealth, behavioral health, and community services, focusing on providing quality healthcare in medically underserved communities.
How Much Funding Has Oak Street Health Raised?
- Seed Round
- Amount Raised: $335K
- Date: December 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company and begin operations.
- Venture Round
- Amount Raised: $40M
- Date: March 2015
- Lead Investors: Harbour Point Capital, Quantum Strategic Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand clinic operations and enhance service offerings.
- Private Equity Round
- Amount Raised: Not publicly disclosed
- Date: January 2016
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support further growth and development.
- Private Equity Round
- Amount Raised: $65M
- Date: May 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand into new markets.
- Post-IPO Debt
- Amount Raised: $300M
- Date: November 2022
- Lead Investors: Hercules Capital, Silicon Valley Bank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide operational and strategic capital for expansion and continued service improvement.
Total Amount Raised: $405.335M
Current Valuation: Not publicly disclosed
Key Investors
- Hercules Capital
- Details: Hercules Capital is a leading specialty finance company providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies. Since its inception in December 2003, Hercules has committed more than $16 billion to over 600 companies.
- Investment Focus Areas: Technology, life sciences, sustainable and renewable technology industries.
- Notable Investments: Committed over $16 billion to more than 600 companies.
- Silicon Valley Bank
- Details: Silicon Valley Bank provides commercial banking services, expertise, and insights to the technology, life science, healthcare, private equity, venture capital, and premium wine industries. It operates globally and is a core business of SVB Financial Group.
- Investment Focus Areas: Technology, life sciences, healthcare, private equity, venture capital, premium wine industries.
- Notable Investments: Known for providing comprehensive solutions and advice to dynamic, fast-growing, innovative clients across various industries.
- Harbour Point Capital
- Details: Harbour Point Capital is a private equity firm that focuses on investing in healthcare services companies. The firm partners with management teams to build leading companies in the healthcare sector.
- Investment Focus Areas: Healthcare services, healthcare technology, healthcare facilities.
- Notable Investments: Not publicly disclosed.
- Quantum Strategic Partners
- Details: Quantum Strategic Partners is a private investment fund managed by Soros Fund Management. The fund invests in a wide range of asset classes and industries globally.
- Investment Focus Areas: Technology, healthcare, financial services, real estate.
- Notable Investments: Not publicly disclosed.
What's Next for Oak Street Health?
With $300 million in new financing, Oak Street Health is poised to expand its national footprint and enhance its primary care services for older adults. This substantial capital injection will enable the company to open more centers and improve healthcare delivery, particularly in underserved communities.
Future fundraising opportunities look promising, given the strong relationships with Hercules Capital and Silicon Valley Bank. These partnerships may pave the way for additional investments, supporting Oak Street Health's growth and innovation in value-based care models.
However, the company faces challenges such as managing financial risks and navigating regulatory changes. Maintaining high-quality care while scaling operations will be crucial for sustained success.
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