Oscar Health’s initial IPO price is so high, it makes me want to swear

Amidst all the hype that Lemonade (IPO), Root (IPO), Metromile (SPAC-led debut) and other insurtech players have generated in the last year, it’s been easy to forget about Oscar Health. But now that the company founded in 2012 is approaching the public markets, one of the early tech-themed insurance companies is catching up on the attention front.


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So this morning we’re digging into Oscar Health’s first IPO pricing interval, hoping to understand how the market is valuing its unprofitable health-insurance enterprise.

Recall that Oscar Health was valued at around $ 3.2 billion in March of 2018. That datapoint, via PitchBook, is dated. Oscar Health raised hundreds of millions since (per several venture-capital tracking databases, including Crunchbase) but we lack a final private valuation for the company.

Regardless, with Oscar Health now targeting a $ 32 to $ 34 per-share IPO range, we can get our hands dirty.

Let’s get some valuation numbers and then decide if Oscar Health feels cheap or expensive at that price.

Billion-dollar IPO

Oscar Health is looking to reap as much as $ 1.21 billion in its IPO, a huge sum. The company is selling 30,350,920 shares, with 4,650,000 additional shares reserved for its underwriters. Existing shareholders are selling another 649,080 shares.

This means that after the IPO, Oscar Health will have 197,037,445 Class A and B shares in circulation, or 201,687,445 after counting shares reserved for its underwriters.

Using the company’s $ 32 to $ 34 per-share range, we can calculate a valuation minimum of $ 6.31 billion for the company (lower share count, low-end of price range) and $ 6.86 billion (higher share count, high-end of price range). That’s the company’s simple IPO valuation.

Oscar Health may also sell up to $ 375 million of its shares at its IPO price to three different funds. The company advises that the “indication of interest is not a binding agreement or commitment to purchase,” so we can ignore it for now.

Startups – TechCrunch

Danish-born Wine app Vivino raises €128.8M as it rides ‘high’ on pandemic-driven growth

Vivino

As people have started to adjust to the effects of Covid-19, alcohol e-commerce sales have grown immensely around the world. It is estimated that by 2024, it will exceed $ 40B (approx €33.25M). With this reference, California-based Vivino, a wine app and marketplace has secured $ 155M (approx €128.8M) in its Series D round of funding. 

Heini Zachariassen, the co-founder of Vivino, credits the company’s growth to this continued shift in consumer behaviour. He says, “Our user retention rates are high, and we’re seeing a steady conversion of app users to wine buyers. That’s a good move in the right direction. By creating more value for our users, we also create more value for the company and industry at large.” 

This round brings Vivino’s total funds raised to date to $ 221M (approx €183.7M) and includes a mix of primary and secondary investment.

Investors in this deal

The investment was led by Swedish investment firm Kinnevik, including a new investor Sprints Capital. Besides, the round also saw participation from GP Bullhound and existing early-stage investor Creandum.

Use of the funds

The company says as its online wine sales are rapidly increasing, the raised capital will the company to focus on select markets with the greatest potential for growth, including the US, Germany, the UK, Italy, Japan, and Portugal.

Besides, the new capital will also enable Vivino to improve its core technology and artificial intelligence (AI) platform to create better and more personalised recommendations for Vivino users.

Zachariassen says, “This round has raised important capital for our rapidly growing company and drawn some exceptional new leaders to our board. The funding will enable us to continue to build on our core strengths, expand industry partnerships drawing more merchants and wineries to our marketplace, and support our continued global growth.”

Everything about the wine marketplace app

Vivino was founded in 2010 by Heini Zachariassen and Theis Søndergaard. The company is a developer of a wine recommendation and marketplace app used to view ratings and buy wines anywhere.

Through Vivino.com and the Vivino app, users can discover and purchase wine based on their individual scanning, rating and purchase behaviour, and community recommendations, making wine discovery fun, accessible, and easy to understand. 

With the Vivino app, one can simply click a photo of any wine label or restaurant wine list and Vivino’s proprietary image recognition technology will provide ratings, reviews, and average pricing for that bottle instantly.

The company currently boasts a community of 50 million wine enthusiasts and has over 700 marketplace partners worldwide. It has posted a 100 per cent annual growth rate for the last seven years and a 103 per cent increase in year-over-year sales in 2020.

Startups – Silicon Canals

[Varo Money in Business Insider] Varo Bank review: Earn a high rate on your savings and receive your paycheck up to 2 days early

Varo pays two interest rates. You’ll earn the highest rate on your first $ 10,000 in savings if you receive at least $ 1,000 in direct deposits and make five debit card transactions per month.

Read more here.

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