Well being information startup Komodo Well being has laid off 9% of its workers as half of a bigger restructuring of its enterprise.
The COVID-19 pandemic created alternatives for the analytics firm, Komodo’s cofounders Arif Nathoo and Internet Solar wrote in a message to staff that was additionally posted on LinkedIn. However the present financial surroundings is forcing its prospects to noticeably contemplate their buying selections.
“As a enterprise, we proceed to be nicely positioned to climate these modifications — we offer essential visibility into the healthcare system to help the strategic selections enterprise healthcare leaders must make,” they wrote. “That mentioned, now we have a accountability to all of you — our staff and shareholders — to take a position responsibly in that progress. We now have at all times prided ourselves on operating a capital environment friendly enterprise, and as we speak we’re taking steps to make sure that we’re nicely positioned for the present world round us.”
In response to reporting by TechCrunch and Fierce Healthcare, Komodo additionally lately closed a $200 million structured fairness infusion led by Coatue Administration with participation from Dragoneer Funding Group.
The startup final introduced a $220 million Sequence E spherical in March 2021 that boosted its valuation to $3.3 billion.
THE LARGER TREND
Based in 2014, Komodo gives a knowledge platform that collects de-identified affected person encounters. That info can be utilized to create software program for all times science corporations and insurers to find out how affected person experiences hook up with well being outcomes.
Although rumors urged the corporate was focusing on an IPO this yr, Insider reported final month that difficult financial circumstances pushed the corporate to rethink its plans.
After a booming yr of digital well being funding and public exits in 2021, few corporations have taken the plunge into the general public markets this yr. A variety of digital well being and well being tech startups have laid off staffers.
Dr. Sunny Kumar, accomplice at GSR Ventures, advised MobiHealthNews the economic system and threats of recession will encourage healthcare trade gamers to investigate their spending subsequent yr.
“For those who have a look at the entire consumers — whether or not that be well being techniques, payers, pharma, even customers themselves — all of them are going to be a bit bit extra conscientious with their spending,” he mentioned. “So, what we have seen already is that anyone promoting to these prospects has to guarantee that their answer is both mission essential or producing an especially excessive worth proposition.”
