- It’s been a rocky year for Outcome Health, a Chicago-based healthcare startup that sets up screens that provide educational health footage alongside advertisements from pharmaceutical companies to doctors’ offices.
- On Friday, Outcome said its two founders, Rishi Shah and Shradha Agarwal, would move from their roles as CEO and president to become chairman and vice chair of the board, respectively.
- The move was part of a settlement after investors sued Outcome Health accusing it of committing fraud to secure the large amount of funding.
For a brief moment going into summer 2017, Outcome Health was one of the buzziest healthcare startups.
In May, the company, which places monitors in doctor’s offices that display advertisements and health information, had raised more than $500 million and the lofty goal of being in 70% of all healthcare providers by 2020.
Then came a closer look. An investigation by The Wall Street Journal in October found the company had been misleading its advertisers, and the investors that were part of the massive funding round sued the company.
On Friday, Outcome said its two founders, Rishi Shah and Shradha Agarwal, would move from their roles as CEO and president to become chairman and vice chair of the board, respectively.
Here’s how a 31-year-old and 32-year-old founding team went from raising $500 million at a $5.5 billion valuation to stepping down after a investor-led lawsuit against their 10-year-old company.
A funding round 10 years in the making
What is now Outcome Health was founded back in 2006 under the name Context Media while Agarwal and Shah were undergraduates at Northwestern University. Shah dropped out of school to run the company, while Agarwal went on to graduate in 2008.
Shah’s sister has type 1 diabetes, and his father’s a doctor. That background got Read More Here