From Upstart to Unicorn: Will GoHealth’s Acquisition Pave the Way for Bigger Tech Deals in Slovakia?
Slovakia is rapidly establishing itself in the global tech scene, with a growing number of startups bringing in millions of dollars in funding. But in the wake of GoHealth’s blockbuster acquisition, could those millions start turning into billions for more Slovakian tech firms?
In 2018, Slovakia’s economic output totaled over USD$106 billion, with much of that figure coming from small and mid-sized businesses. Inc. Magazine ranked Slovakian capital Bratislava as one of the top three cities with the “fastest-growing private companies” in Europe, behind Stockholm and London. Notable startup deals include autonomous vehicle startup Blue Vision, which received a whopping $100 million investment from Lyft; Bratislava-based software vendor Minit, which raised €3.3 million in December 2018; and 3D and AR design firm Vectary, which has raised nearly USD$3 million since 2014.
But those numbers pale in comparison to last week’s announcement that private equity firm Centerbridge bought a controlling stake in GoHealth in a $1.5 billion deal. The news comes on the heels of Chicago-based GoHealth’s acquisition of Creatix this spring, making it one of the first unicorn deals with ties to Slovakia — but likely not the last.
According to Pitchbook, this will be the largest deal for a Chicago-based tech startup in the past five years, beating IBM’s payment of $1.3 billion for Cleversafe in 2015 and the $974 million SAP paid for Fieldglass in 2014. On the other side of the ocean, this news has big implications for Slovakian startup funding.
The existing management team remains in place at GoHealth to continue driving its incredible growth, and Centerbridge’s involvement means even bigger things in store for Creatix, now GoHealth Slovakia. From its founding in 2004 as a software development startup with big dreams, Creatix has grown to a globally recognized team of nearly 100 members. The firm’s acquisition represents the ultimate validation of its story over the last 15 years, while paving the way for more Slovakian tech unicorns to come.
A History of Success
Creatix’s partnership with GoHealth dates back to 2015, when the two teams joined forces to fuel the expansion of GoHealth’s health insurance technology platform. The platform helps millions of customers access and shop for affordable insurance plans, while enabling insurers to reach consumers at scale. GoHealth has captured the market at a timely moment, as loosening health insurance restrictions and a growing number of retiring Baby Boomers drive demand for quality Medicare Advantage and other alternative health insurance products.
GoHealth has soared in recent years, becoming an industry leader recognized for innovation in the health insurance sector. This April, GoHealth completed its acquisition of Creatix, just months before this next step in the company’s incredible trajectory.
What’s Next for Slovakia?
With one major deal happening in its backyard, Slovakia’s tech community could soon see increased interest and investment from large firms. The country already has a reputation as a hub for software professionals, with big-name tech companies like IBM, Accenture and Oracle leading the way on innovation in Slovakia. With nearby Slovak University of Technology turning out more developers every year, the opportunities for young tech talent are clearly growing.
The GoHealth/Centerbridge deal offers a glimpse of the widespread innovation happening across the country. Other companies like ESET, which offers anti-virus and firewall IT security products, are rapidly rising in valuation and underscoring the potential for future tech growth. Valued at €123 million by Forbes in 2014, the company’s estimated annual revenue now sits at over USD$500 million. Deloitte’s 2017 Technology Fast 500 rankings for Europe featured four Slovak software companies: Inloop, Riešenia, Piza SEO and RESCO. Slovakia’s new household names also reflect an interest in software development and future tech. The country’s top 10 startups list includes platforms for user-friendly SEO tools (Mangools), iTags (eDocu) and conversational AI (Nettle.ai).
GoHealth’s acquisition may be the first $1B “unicorn” deal with ties to Slovakia, but will hopefully soon be one of many opportunities to stimulate growth and strengthen ties between the American and Central European workforces. All in all, Slovakia is well-placed to become a global tech leader, and we are excited to be along for the ride.
Since we first partnered with GoHealth in 2015, it’s been a privilege to contribute to leading innovation in the healthcare industry. Earlier this year, that turned into a permanent opportunity as we became part of the GoHealth family. Now, we have a chance to show our fellow Slovakian companies the potential that lies in pursuing their startup dreams.
