Oscar Health IPO Raises $1.4 Billion On $7.9 Billion Valuation

Insurtech Oscar Health, co-founded by Joshua Kushner, raised $1.4 billion in an initial public offering (IPO) on a $7.9 billion valuation, The Financial Times reported on Wednesday (March 3).  

Kushner, brother to Jared Kushner, former President Donald Trump’s son-in-law, co-founded Oscar Health in 2012 with CEO Mario Schlosser and Kevin Nazemi, a former Microsoft executive. Kushner is also the founder and managing partner of Thrive Capital. 

Following the IPO, Joshua Kushner will hold about 76 percent of Oscar Health’s voting power, according to the filing with the Security and Exchange Commission (SEC). The company is planning a listing on the New York Stock Exchange (NYSE) under the ticker symbol OSCR.

Kushner’s Thrive Capital stake in Oscar is worth approximately $1.3 billion and has 75.9 percent of the company’s voting power. Oscar, with over 500,000 clients in 18 states, was “built around a full-stack technology platform.” Regardless, the startup lost $400 million on $460 million in revenue, down nearly $490 million from the previous year, per FT.

Almost all of Oscar’s revenue is a result of the 2010 Affordable Care Act and could change along with regulations, according to the filing. The Supreme Court recently reviewed the Affordable Care Act — not for the first time — and is expected to announce a decision in the coming months. U.S. President Joe Biden has said that he is planning to overhaul the healthcare system in the country. 

The New York-based company priced its shares at $39 each, according to a press release, and is expected to close on Friday (March 5). Goldman Sachs, Morgan Stanley and Allen & Company are lead managing bookrunners and Wells Fargo is the managing bookrunner, along with Credit Suisse and BofA Securities. 

Oscar, backed by Google’s Alphabet, coordinates tests ordered by primary care physicians and laboratory results. The startup also aims to reduce the time lag for payments to healthcare providers. The company name comes from Kushner’s great-grandfather, according to the SEC filing.