Clover Health, the technology-focused startup serving Medicare Advantage customers, just got another infusion of venture capital.
The company is now valued at $1.2 billion, Bloomberg reported, categorizing it as a “unicorn” in Silicon Valley-speak. That’s thanks to a $130 million investment from Greenoaks Capital and other investors, including GV, the venture arm of Google’s parent company, Alphabet. Clover’s total funding has now reached $425 million.
The company’s business model is focused on using predictive analytics to identify high-risk patients and potential care issues, such as medication nonadherence. Clover then uses that that information to help clinicians and caregivers design interventions to improve outcomes for targeted individuals or populations.
Despite its lofty goals, the startup has experienced some missteps. It was fined by the federal government last year, in part because its marketing materials made inaccurate claims about which providers are in-network for Clover enrollees. In addition, Axios reported recently that Clover lost $34.6 million in 2016, which is seven times more than it lost the year before.
Still, Clover plans to use its new investment funding to expand to serve as many as three more states by October, the article added. The San Francisco-based company currently serves 25,000 customers in New Jersey.
Clover’s founder and CEO, Vivek Garipalli, has said previously that the company wants to take a measured approach to expansion rather than growing too fast, too soon. Mike Dixon, a partner at one of the firms that invested in Clover, echoed that point.
“It would be a mistake to scale too quickly before we’ve nailed it locally,” he told Bloomberg.
Editor's note: This article has been updated to clarify that Clover raised $130 million from Greenoaks Capital and other investors, including Alphabet's investor arm, GV.