H1, a healthcare data analytics platform catering to the pharmaceutical sector with insights on over 10 million healthcare professionals, has acquired Ribbon, a startup dedicated to assisting patients in finding doctors who accept their insurance.
The financial specifics of this acquisition remain undisclosed. Ribbon, established in 2016 and a Y Combinator graduate, last raised funds in 2021 with a $43.5 million Series B funding round that valued the company at $283.5 million, according to PitchBook data.
Many startups that have not secured funding for over three years are feeling mounting pressure, with many becoming acquisition targets or facing imminent closure. However, Arial Katz, co-founder and CEO of H1, informed StartupSuperb that Ribbon “was not a company that was running out of business.” H1’s acquisition involves a mix of stock and cash, with Ribbon reportedly generating “well over tens of millions in revenue,” he added.
Ribbon has attracted a total of $55 million from several investors, including Andreessen Horowitz, General Catalyst, and Rock Health.
In contrast, H1 has successfully raised approximately $200 million, achieving a valuation of around $773 million in 2022. PitchBook also indicates that H1 secured an undisclosed amount in 2024.
Katz revealed to StartupSuperb that H1 has been interested in merging with Ribbon for several years. Both companies gather similar data yet serve different clientele.
“I’ve been trying to buy Ribbon for three years,” Katz remarked, adding that the two entities share numerous synergies in their data collection efforts.
Ribbon aids patients by offering comprehensive information about doctors’ specialisations, costs, and quality of care. Healthcare navigation companies like Transcarent and Rightway purchase Ribbon’s data, making it accessible to patients via health insurance platforms. Conversely, H1 collaborates mainly with pharmaceutical and other healthcare enterprises, supplying data and insights to facilitate processes such as the setup and execution of clinical trials.
While Ribbon’s acquisition was unlikely a distressed sale, it’s anticipated that many startups will face challenges in securing additional funding this year, nearing the end of their financial runways. These companies may become acquisition targets if they do not cease operations altogether.