DLA Piper represented health insurtech company Sidecar Health in its recent US$125 Series C financing, resulting in its subsequent valuation at US$1 billion. The round was led by Drive Capital and included participation from new investors BOND, Tiger Global and Menlo Ventures, along with existing investors Cathay Innovation and GreatPoint Ventures.
Sidecar Health's proprietary app and payment technology allow members to see their benefit amounts for more than 170,000 medical services and prescription drugs before they access care. Members can also view what providers have charged other Sidecar Health members for services, which allows them to comparison shop for care as they would for any other product or service. Members can also pay doctors at the time of care using a Sidecar Health Visa card that pulls payment directly from their plan's claims account, taking advantage of doctors' discounted "self-pay" or "cash" rates and saving them 40 percent or more on healthcare costs.
Sidecar Health will use the Series C investment to expand its geographic footprint, grow its team and invest in new insurance products that build on its success in the uninsured market. The first of these will be an Affordable Care Act (ACA) offering for 2022, followed by a product for the self-funded employer market.
"It has been our pleasure to work with Sidecar Health and this talented team since formation and in completing this financing round, which led to an impressive US$1 billion valuation for the company. The management team and Board have done an incredible job of quickly building a company that is making a difference for many people, and the funds will support the company's continued growth and help it continue its mission of making health insurance affordable and great care accessible for everyone in the US," said Randy Socol, the DLA Piper partner who led the firm's deal team.
"DLA Piper has been our partner since day one and an important advisor throughout our growth and fundraising," said Patrick Quigley, CEO and co-founder of Sidecar Health. "We could not be happier to have such an insightful and experienced team by our side."
In addition to Socol (San Diego), the DLA Piper team representing Sidecar Health included associate Ian Hlatky (Los Angeles) and of counsel Nicholas Klein (Washington, DC).
DLA Piper's Emerging Growth and Venture Capital practice includes more than 200 lawyers in the US who provide strategic counsel to emerging companies in high-growth industries, including healthcare, insurance, biotech, manufacturing, communications, software and semiconductors. Over the last three years, DLA Piper has completed more than 2,100 financings totaling over US$31 billion.
DLA Piper's global Healthcare sector consists of a multidisciplinary legal team with niche experience in health-related business and legal issues. The team regularly works with corporations and financial institutions, private investors, private equity groups, venture capital funds, institutional investors and portfolio companies in all types of healthcare transactions.
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