Olive AI, a healthcare automation company once valued at nearly $4 billion in the Prime Unicorn Index, has recently announced its decision to shut down operations. The company has sold itself off in pieces to healthcare companies Waystar and Humata Health and will wind down its business1. This news comes after Olive AI faced financial struggles, including layoffs of about 450 workers in July 2022 and an additional 200 job cuts in February.
The company had previously raised $843.59 million from investors, including Vista Equity Partners, Dragoneer Investment Group, General Catalyst, Sequoia Capital, Tiger Global, Google Ventures, and Base10 Ventures. Its last round was a $450.32 million Series H round on June 28, 2021, which valued the company at $3.93 billion on a post-money basis at $14.13 per preferred share.
The decision to shut down operations is a significant development in the healthcare and technology industries. Olive AI was known for its innovative solutions in healthcare automation, and its closure will have implications for the future of automation in the healthcare sector. The company’s struggles and ultimate shutdown highlight the challenges faced by startups in the healthcare industry, which often require significant investment and face regulatory hurdles. It also serves as a reminder of the risks associated with investing in high-growth, high-risk companies, as even those with promising technologies and substantial funding can face difficulties that lead to their closure.
Olive AI will be removed from the Prime Unicorn Index at the next reconstitution.