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Health IQ

The business, the turning points, and the decisions behind them.

Founded2013
Event year2023
FundingUS$450M
ValuationUS$450M

01 / WHAT IT BUILT

What the company did

Health IQ, founded in 2013 by former Googler Munjal Shah and Gaurav Suri, was a California online insurance platform. It began as a life insurance intermediary rewarding healthy lifestyles with lower rates, then pivoted in 2019 to selling Medicare Advantage plans to aging Baby Boomers, using data-driven insights and AI. Backed by Andreessen Horowitz, Aquiline Capital Partners and others, it raised more than $200M in equity and convertible debt.

02 / Health IQ FAILURE REASONS

Failure reasons

Health IQ failed after burning through its cash: it was in crisis mode by late 2022, rapidly depleting its reserves and laying off hundreds of employees and contractors on December 8, 2022, while facing dozens of lawsuits over unpaid wages and benefits. On August 30, 2023 it filed for Chapter 7 bankruptcy in Delaware to liquidate, listing just $1.3M in assets against $256.7M in liabilities to lenders, investors and vendors. Court filings also showed continued high founder compensation during the turmoil, which drew criticism.

03 / EVENT HISTORY

Events in the structured record

  1. Bankruptcy

    Health IQ filed liquidation bankruptcy in Delaware federal court 30 Aug 2023 with $256.7M liabilities vs $1.3M assets. Inforuptcy docket: Hi.Q, Inc. dba Health IQ, case 23-11361, liquidation bankruptcy Voluntary, filed 08/30/2023.

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    Health IQ was founded in 2013 by Munjal Shah and Gaurav Suri as a life insurance platform rewarding healthy lifestyles; it pivoted to Medicare Advantage plans in 2019 and raised more than $200M.

  2. 02

    In crisis by late 2022, it laid off hundreds of employees and contractors on December 8, 2022 while facing lawsuits over unpaid wages and benefits.

  3. 03

    On August 30, 2023 Health IQ filed for Chapter 7 bankruptcy in Delaware to liquidate, with $1.3M in assets against $256.7M in liabilities.