If you see a tablet next to your chair the next time you visit the doctor, chances are that Outcome Health provided the device and its content. The little-known Chicago-based company has been quietly bootstrapping since its founding in 2006, but now it’s entering the spotlight with a bang: Raising nearly $600 million in growth equity from the likes of Goldman Sachs and Alphabet’s CapitalG, and announcing that it serves 20% of all U.S. physician practices. The round’s $5 billion pre-money valuation makes cofounder and CEO Rishi Shah a 31-year-old billionaire.
“We’re able to drive meaningful behavior change for patients,” says cofounder and president Shradha Agarwal, based on pharmacy and claims data that the company tracks.
It’s a lofty mission, with a surprisingly simple product strategy: Deliver digital content to patients while they wait. Outcome makes money by placing targeted pharmaceutical ads and clinical trial sign-ups alongside educational material like recipes and exercise routines.
Agarwal says Outcome has been profitable for several years, and will use the funding to grow its footprint in the U.S., U.K., and Canada.