Digital health company Castlight Health is well-funded, well-hyped, and it has reportedly filed confidential papers for a public offering.
All eyes are on what could be a $2 billion IPO, according to Fortune. One Forbes contributor claimed that it will earn the digital health sector some much-needed “respect” on Wall Street. But can the San Francisco-based Castlight, which aspires to bring transparency to health care costs, live up to the hype?
Castlight was cofounded in 2008 by some of the biggest names in health-tech, including Todd Park (the current CTO of the United States), prominent investor Bryan Roberts, and current chief executive Giovanni Colella. Park hasn’t been involved in the day-to-day operations for years, but Roberts works closely with the company as the chairman of the board of directors.
The story goes that Colella got the idea after he sold his previous startup, RelayHealth, to McKesson Corp. in 2006 for an undisclosed sum.
“We get a bill six months after we go to see a doctor, and usually there’s a surprise. I started thinking, this is just crazy. This would be unacceptable in any other industry,” Colella told the Wall Street Journal, shortly after Castlight was named one of the “Top 50 Venture-Funded Companies” (it fell out of the top 50 in 2012, after the WSJ claimed that investors had soured on healthcare).