Clover Health is re-inventing how money works

October 24, 2017

PUBLISHED BY Becky Peterson

SOURCE Business Insider

Everyone likes money.

But technology that handles money is what’s really popular these days.

The rise of “fintech,” or, financial technology, has unleashed a new breed of apps, sites and services designed to help consumers pay for goods, get loans and manage their retirement accounts.

Fintech is a multi-billion dollar industry, with startups in the US raising around $18 billion since 2015, according to PitchBook and nearly 1,400 venture capitalist-backed deals. Two of the most valuable startups in the country — Stripe and SoFi — are in the fintech sector. And there are 11 fintech startups valued at more than $1 billion.

To get a sense of why fintech is so hot right now, we took a look at the 11 most valuable VC-funded US fintech startups, as compiled by PitchBook.

Like any fast-growing industry, fintech hasn’t been without its bumps. Some companies on the list have had layoffs and scaled back from their initial success. One in particular — SoFi — forced out its CEO over summer following allegations of sexual harassment at the company.

But all 11 startups have made a dent in the space and give credence to venture capital’s multi-billion dollar bet that fintech isn’t going away anytime soon. Here’s why:

11. Clover Health — $1.2 billion

11. Clover Health — $1.2 billion

Clover co-founders Kris Gale and Vivek GaripalliClover Health

Clover Health is valued at $1.2 billion since its $130 million financing round in June 2017.

The health insurance company is backed by Alphabet Inc.’s investment arm GV and focuses on customers with Medicare Advantage.

For customers, it’s just another insurance company. But Clover also aims to use data to improve its users’ health. The company analyzes patient data to identify gaps in care and potential medical issues, in order to prevent emergencies which might be costly to the insurance provider.

The company has raised a total of $425 million since it launched in 2013.

Read the full article on Business Insider here.