H1, a healthcare data analytics platform serving the pharmaceutical industry with data on more than 10 million healthcare professionals, has acquired Ribbon, a startup that helps patients find doctors supported by insurance. Financial terms of the deal have not been disclosed. The last time Ribbon – founded in 2016 and alum of Y Combinator – raised money was in 2021, when it closed a $43.5 million Series B worth $283.5 million, according to PitchBook data. Many startups that haven’t received funding in more than three years are under increasing pressure, and many are the target of acquisitions or face imminent closure. But Arial Katz, co-founder and CEO of H1, told TechCrunch that Ribbon is “not a company out of business.” H1 paid a combination of stock and cash to acquire Ribbon, which earned “more than tens of millions in revenue,” he added. Ribbon has raised $55 million overall from investors that include Andreessen Horowitz, General Catalyst and Rock Health. For its part, H1 has raised about $200 million and will eventually be valued at about $773 million in 2022. PitchBook notes it will also raise an undisclosed amount in 2024. H1 aims to merge with Ribbon within several years, Katz told TechCrunch . The two companies collect the same information but serve different sets of clients, he said. “I’ve been trying to buy Ribbon for three years,” Katz said, adding that the two companies have synergies because they collect the same data. Pita serves patients by providing information on physician expertise, cost and quality. Ribbon data is purchased by health navigation companies like Transcarent and Rightway and then made available to patients through health insurance sites. Meanwhile H1 tends to work with pharmaceutical companies and others in the healthcare business that provide data and other insights to help, for example, set up and conduct clinical trials. Although Ribbon may not be a fire sale, we expect to see many startups this year struggling to raise funding and reach the end of the runway. They will be targets for acquisitions, if not shut down altogether.
