the health strategist
institute for strategic health transformation
& digital health
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO),
Chief Editor and Senior Advisor
September 13, 2023
What is the message?
The telehealth industry has experienced significant fluctuations in valuations, with some companies soaring in value while others face market cap reductions.
In light of these changes, there is a growing focus on workforce management and efficiency within telehealth companies.
The analysis of valuation per employee among top telehealth unicorns sheds light on how effectively these companies utilize their workforce, with notable players like Cerebral, Carbon Health, and Transcarent leading the way in terms of valuation and innovation.
One page summary:
A recent examination of the telehealth industry reveals fascinating insights into the valuation per employee among telehealth unicorns, including companies like Cerebral, Carbon Health, and Transcarent. As of August 2023, telehealth companies have experienced both meteoric rises and subsequent drops in valuations. This analysis becomes increasingly important as the telehealth market evolves, shedding light on how efficiently these companies manage their workforces.
In 2021 and 2022, telehealth companies witnessed an unprecedented surge in funding, headcounts, and valuations. For instance, Transcarent’s valuation skyrocketed from $1.6 billion to a staggering $1.6 billion within just seven months. Notably, established players like Signify Health entered the public market with multi-billion dollar valuations during this period.
However, the subsequent years have seen fluctuations in telehealth valuations, with companies like Amwell and Teladoc experiencing significant market cap reductions from their peak valuations in early 2021. With the telehealth market facing challenges, increased attention is directed towards workforce management as a means of maintaining efficiency.
One key metric used to evaluate efficiency is the valuation per employee, which serves as an indicator of how effectively a company utilizes its workforce. In this analysis, CB Insights leverages digital health data to assess telehealth unicorns (private companies valued at $1 billion or more) based on this metric.
The report examines:
- Top telehealth unicorns by valuation.
- The most valuable telehealth unicorns ranked by headcount.
- The most valuable telehealth unicorns ranked by valuation per employee.
Among the telehealth unicorns, some of the highest-valued companies include:
- Cerebral ($4.8 billion)
- Carbon Health ($3 billion)
- Kindbody ($1.8 billion)
- Transcarent ($1.6 billion)
- Maven ($1.4 billion)
Each of these companies operates in distinct segments of the telehealth space, ranging from
- behavioral health (Cerebral) to
- hybrid care services in primary care (Carbon Health),
- fertility care (Kindbody),
- women’s health (Maven), and
- comprehensive virtual care offerings (Transcarent).
As the telehealth landscape continues to evolve, understanding the valuation per employee offers a crucial perspective on the industry’s efficiency, with these top telehealth unicorns leading the way in terms of value and innovation.
NOTE ABOUT: Babylon Health
Former telehealth unicorn Babylon Health was once valued at $2B before going public via SPAC at a $4.2B valuation in 2021.
However, the broader telehealth slump and company missteps resulted in its US business filing for bankruptcy last month. Then last week, its UK-based entity entered into administration.
DEEP DIVE
Which telehealth unicorns have the highest valuation per employee?
CB Insights
August 31, 2023
Using our headcount and valuation data, we analyze telehealth unicorns like Cerebral, Carbon Health, and Transcarent to see which ones have the highest valuation per employee.
In 2021 and 2022, telehealth companies saw their funding, headcounts, and valuations skyrocket.
For example, in January 2022, Transcarent raised at a $1.6B valuation — a 3.5x increase from its valuation just 7 months earlier. Additionally, leading companies like Signify Health went public at multi-billion dollar valuations.
Since then, however, some telehealth valuations have plummeted. Public companies like Amwell and Teladoc, which were worth $8.4B and $43.7B, respectively, in early 2021, have watched their market caps drop to $386M and $3.9B in August 2023.
As the telehealth market has slumped, more attention has been given to how companies are managing the size of their workforce. Looking at valuation per employee in particular can provide an indicator of a company’s overall efficiency.
Below, we use CB Insights digital health data to evaluate telehealth unicorns (private companies valued at $1B+) using this metric. We’ll examine:
- Top telehealth unicorns by valuation
- Most valuable telehealth unicorns ranked by headcount
- Most valuable telehealth unicorns ranked by valuation per employee
TOP TELEHEALTH UNICORNS BY VALUATION
Among telehealth unicorns, the most highly valued are:
- Cerebral ($4.8B)
- Carbon Health ($3B)
- Kindbody ($1.8B)
- Transcarent ($1.6B)
- Maven ($1.4B)
Cerebral operates in the behavioral health space, while Carbon Health, Kindbody, and Maven offer hybrid care services in the primary care, fertility care, and women’s health spaces, respectively. Transcarent provides a breadth of virtual care offerings — covering everything from urgent care to specialty needs to pharmacy services — centered around on-demand telehealth.
Originally published at https://www.cbinsights.com
