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- Hazel Health, a telehealth startup, works with students in grade schools.
- Business has exploded over the course of coronavirus outbreaks. In just 3 months, the company added about 1 million students to the network, it said.
- Here’s a look at the pitch deck Hazel used to get a fresh $33.5 million from investors including health insurer Centene in September.
- Visit Business Insider’s homepage for more stories.
Hazel Health wants to bring virtual care to grade schools.
Hazel Hazel works with school districts to provide video visits for kids that are reimbursed through the family’s insurance. It also makes money directly from programs funded by schools and, in some states, Medicaid.
The company also has a few grants to finance telehealth visits students who are uninsured. Hazel currently has 1.5 million students enrolled in its care service for schools.
In September, Hazel raised $33.5 million in funding from investors including Centene, a $32 billion insurer. With the new funds, the startup says it can reach 30 million students in states like Florida, New York, Washington, and Illinois where it doesn’t have existing infrastructure.
Since June, Hazel has grown by 400%, adding about 1 million students to the network, it said. while finding itself taking on two new roles: Reaching students in their homes for the first time, and advising their schools on testing and how to reopen safely while coronavirus outbreaks continue.
Hazel cofounder and chief technology officer Nick Woods said the company became somewhat of a “virtual chief medical officer” for schools facing uncertain times.
“Schools are struggling right now,” Woods said.
What won investors over
The coronavirus pandemic prompted the company to build its first consumer-facing product, a telehealth service available in homes and not just nurses’ offices.
That, along with sign-ups from new school districts, led some key investors to get on board, Hazel CEO Josh Golomb said. Owl Ventures, Bain Capital Ventures, Centene, and UCSF Foundation Investment Company all backed the five-year-old startup in its Series C round in September.
Hazel’s work with Medicaid, the state and federal program that pays for medical care for some low-income Americans, played a big role in winning over Centene, since it’s the largest Medicaid insurer.
Others were brought in by Hazel’s user experience, which hints at Woods’ background in iOS engineering for Apple. To raise the round, Hazel did more remote pitches and demos with investors.
That allowed the product to resonate as something special and different because of Woods’ design, Golomb said.
“There’s terrible software in healthcare,” Woods said. “We wanted to make something that was beautiful and easy to use.”
Business Insider got an exclusive look the pitch deck that won over the likes of Centene and Bain Capital. Some financial information has been excluded. Take a look:
Hazel kicks its pitch off with an introductory slide. Hazel works with its own doctors and local healthcare workers, to do virtual visits for grade school students.
Hazel’s deck then lays out its team and their backgrounds in tech and healthcare. Nick Woods, a cofounder and the CTO, came from Apple, Hazel’s CEO Josh Golomb, came from DaVita, a $10 billion healthcare company that does kidney care, where he served as president.
Hazel says it’s going after a huge healthcare market, namely the $150 billion spent on school-aged kids’ medical needs.
Golomb said Hazel’s investors recognized that this was the moment to expand to more schools. Hazel’s original investors encouraged Golomb and Woods to think about raising more money, since interest in telehealth was spiking.