Why We Invested in Clover

We’re very excited to announce investment of Nexus Venture Partners in Clover.

Clover is a data driven health insurance company focused on transforming healthcare delivery in the US. They offer a cost-effective Medicare Advantage insurance plan for people aged 65 and over. Through direct intervention driven by advanced data-science, Clover strives to bend the healthcare cost curve while improving outcomes.

We are primarily an early stage venture firm and evaluate every investment opportunity from an early stage lens. Although by conventional definitions Clover raised a growth round, we still see it as an early stage investment given that the company is yet to accomplish even 1% of what is possible.

At Nexus, we believe that technology has the potential to transform the global healthcare system that is expensive and produces less than optimal outcomes. Technology will play equally transformative role in the US, India, and the rest of the world by making better affordable healthcare available to everyone.

Collection, correlation, and machine learning from data will be pivotal in this journey. Data will come from multiple sources including electronic medical records, claims records, family history, geo-location, gene mapping, and behavior. Deriving actionable insight is difficult given disparate and unconnected data sources, need to protect privacy, and large volumes of data with sparse information.

In addition, we believe that dramatic change in care delivery can only be realized when interests of all key stakeholders — payers, patients, and providers are aligned and when they all win simultaneously, not one at the expense of another.

That’s what Clover stands for. They build risk profiles of patients (given access to claims data being an insurer and clinical data through integrations with providers), identify targeted intervention opportunities, and act upon them ahead of time (care coordination team reaches out to doctors / patients) to manage chronic diseases better. The approach leads to better clinical outcomes (e.g., reduction in doctor-visits, hospitalization rates), reduces effective cost of care, and eventually passes the benefit to patients in the form of lower out-of-pocket costs and premiums.

We’re delighted to be partnering with Vivek, Kris, and the entire team at Clover in their vision to redefine the future of healthcare delivery.

PS: Clover is hiring!

For more insights from the Nexus team, click here.