Aledade Series-D

This is the Aledade pitch deck to raise a $100m series-d round in 2021.

About

Aledade is a primary care physician platform to provides everything the doctors to create and run an Accountable Care Organization. Aledade partners with independent, primary care physicians to provide everything the doctors need to create and run an Accountable Care Organization (ACO) from business and practice transformation services to upfront capital and a cutting-edge technology platform. The company’s customized solutions and continuous, on-the-ground support of our physician partners will help doctors in all types of communities across America preserve their autonomy, deliver better care to their patients, reduce overall costs, and keep independent physician practices flourishing.

Adelade was founded in 2014 and is headquartered in Bethesda, Maryland, United States.

Despite the toll that the COVID-19 pandemic took on the healthcare system in 2020, primary care

company Aledade experienced its biggest year of growth yet.

The seven-year-old startup, which helps independent primary care practices and clinics get paid based on how well they take care of patients, now works with about 800 practices in 31 states, up from about 555 practices in 27 states a year ago.

Those practices manage the care of 1.2 million patients under contracts set up by Aledade. At this time last year, Aledade’s practices managed 840,000 patients in the contracts.

“As we have had more and more success in getting payments to practices, we’re now able to pull in even the sceptics,” Aledade CEO Dr. Farzad Mostashari told Insider.

Aledade’s growth shows no signs of slowing. The company said Tuesday that it raised $100 million in a Series D funding round led by Meritech Capital, bringing its total funding to $306 million. Tiger Global Management, IVP, and OMERS Growth Equity also contributed.

The latest round values Aledade at $2.1 billion, according to sources close to the deal.

Aledade is planning to expand into more states while growing its footprint in Medicare Advantage

Mostashari said the company will use the funds to expand into new states and invest in its technology so it can support primary care practices with better data and analytics.

It’s also planning a big expansion in Medicare Advantage, a red-hot insurance market that’s growing fast as more seniors turn 65 and become eligible for the program, which is a private alternative to traditional Medicare.

Aledade expects to collect $285 million in revenue in 2021, an increase of more than 50% from a projected $185 million in 2020, according to the company. The company said it reached profitability in 2020.

A few primary-care startups, including One Medical and Oak Street, have recently gone public. Mostashari said Aledade has a lot of growth ahead of it. While he could see his company going public, he’s not in a rush.

“We’ll do it the right way and we’ll do it at the right time,” he said.

Aledade’s investors say the company has a proven, scalable business model

Aledade’s model is working: To date, the company said its practices have received more than $115 million in revenue from the savings they’ve achieved.

Craig Sherman, the general partner at Meritech who led Aledade’s latest funding round, said the startup has proven its ability to improve patients’ health and help doctors keep their independence. Moreover, it can grow quicker than other primary-care startups that are building clinics from scratch.

“It’s far more scalable, it can grow radically faster than the others and be much more capital-efficient, and when we saw the patient outcomes were as extraordinary as they are, we decided to double down,

” Sherman said.

Funding Rounds

Announced Date	Transaction Name	Number of Investors	Money Raised	Lead Investors
Jan 19, 2021	Series D – Aledade	4	$100M	Meritech Capital Partners
Apr 20, 2020	Series C – Aledade	6	$64M	OMERS Growth Equity
Jan 19, 2019	Corporate Round – Aledade	2	$10M	Echo Health Ventures, Mosaic Health Solutions
Dec 19, 2017	Series C – Aledade	3	$46.1M	Biomatics Capital Partners, Venrock
March 8, 2017	Series B – Aledade	5	$40.2M	Biomatics Capital Partners
Jun 15, 2015	Series B – Aledade	2	$30M	ARCH Venture Partners
June 18, 2014	Series A – Aledade	1	$4.5M	Venrock

Pitch Deck Review Summary

Slide by Slide Review

Don’t put the date on the cover.

Look at this slide and tell me what the point is in 3 seconds. Can you do it? Nope. Why will investors read it, and what do you think they will learn? This is a slide you might make for a stage presentation, but it’s not structured correctly.

Who knows what the point of this slide is, but at least there is a picture of a waterfall.

Our healthcare system rewards disease, not prevention followed by content that actually supported that claim would make for a fantastic slide though! I love contentious things like that.

Delete the conf and prop in the bottom right. There is no need.

This is a dumb slide. It looks pretty but it masks the fact it’s not useful to investors. There is the foundation for something on this slide, it’s just not done well.

The header is far too anaemic. It should be bolder. I don’t know what the point is though.

Seriously, a big piece of advice – do not include stock images in your deck. They are a lame-ass crutch designers use to make slides look pretty. Designers have no clue that the objective is to raise money- their task is to make things superficially appear pretty. I don’t like designers without direction.

A matrix with two horizontal and three vertical is a solid structure for communicating on a slide though. I don’t like how the content is written. If I were to play hard-ass with the founders on a call and said “So what? Why does that matter?” three times you can be sure the content would be written differently.

Come on it should be obvious that the pie chart-looking thing on the left is not needed.

It’s a bit confusing that there seem to be two headers. The one at the top and then the one in the table box with the background image.

Do not use background images. They are never needed. It’s another annoying thing designers choose to use.

The way that I design decks looks a little ugly, but it is designed for communication. And we are in a communication competition, not a design one.

They design their team slides in a weird way. The CEO and President (who I presume are the founders?) are shoved into the top.

This is the first deck I have ever seen that goes on to structure up the team into three boxes with a header and description. I have to say I like it, but the two dudes stuffed into the top are whom the investors are investing in.

They do have some strong investors, but they give the same space to the investors as they do the team and they do the investors slide better.

Wait a second. So the top is the board and the bottom is the investors? This is a bit weird. I only noticed because Farzad said CEO and nothing below which I thought was peculiar.

There is too much going on in this slide. Far too much.

The 84% box is gone, one bullet off the top and two off the bottom. The quote at the top might kill the images too.

I haven’t even read the content. I would say the two middle text slots are about all the content you are allowed to have on the slide.

Following on from too much, the first things I see are too many words and too small font size.

I got shite faced with a smart guy at a party who made me look at his deck. He lectures at some fancy pants USA B-School. I gave him feedback on his deck and it was structural and he kept replying “This is what I teach my students!” I replied, “So why the F aren’t you doing it then?”

The reason I comment on the structure of slides rather than the content is that I’m not going to read content if it is not structured properly.

If these guys were my clients, I would annihilate this slide. It would look like a 4 step process with product images, a header, and then a short description.

The way you actually make a slide is to decide what topic you want to cover on a slide then the content you could use, then you decide how the content could be structured, then you pick the content to fit into a structure that is easy to read.

This may or may not sound like gobbly gook to you. The test you want to make is “Will an investor actually read this slide in 5 seconds?… with an option to read more if they like.”

I get the feeling I would like these guys as a client as they have numbers on their slides (so they probably know their business). they have the content, they just need to structure it better.

NOTE: You have to have the content first! You need in-depth knowledge to be able to make slides simple.

There are good points on this slide, it’s just a little unfocused. I don’t get the connection to the header.

Crap, sorry. Just noticed the next two images are not of great quality. Not sure if there was an upload or conversion issue.

Structure-wise there is too much info on the slide. This is two slides or one restructured.

These slides are actually good learnings for those who are good at making content. You need to internalise that less is more. McKinsey are paid to make analysis papers. Your deck needs to be simple. Think in terms of “What is the min I need to say” so 1/ they actually read the whole slide (or understand the message) and 2/ they say “hm, interesting, I want to know more”

I guess to explain my obsession with structure, if I have a good structure aligned to making the point I want to make, I can change the words in the structure to make the point more clearly.

Because I’ve started making a lot of template slides, I’ve found it’s easier to make quality slides by saying “Hm, sounds like there are three points to make. The slide could look like this right? Yeah? OK, cool, fill this in”. Founders have a clear structure and focus on using the most interesting content to communicate it.

It’s important to note that it’s taken my years to develop template slides that actually work. The templates you can buy online are crap and have never been tested.

You want to make one clear point per slide and the structure of the slide enables that point to be clearly made. If you have a crappy template slide you are forced into explaining things in a way that doesn’t work.

Communication is really hard, but it’s super important. Optimal structure helps people communicate better. I’m writing stream of consciousness, but I will say I am still figuring out the ‘Matrix’ of templates for how to communicate everything well.

Another pixelated image. Sorry.

Can’t read it but I love the look of it and they show math. Doesn’t look like it is overblown.

I would delete the blue box on the left.

The question I always pose to founders is “Does this add or subtract?” In the case of the blue box during the anal mode of ‘let’s kill stuff”, I can tell you that the blue box will be deleted by 95% of founders. Every time.

To save you $1000 an hour on a call, just ask “If Alex said ‘Do you really need this?'” and you said ‘No’ then you delete it. I don’t want to deify myself, but thinking someone is judging you can help you make better decisions when it comes to cutting down your slides.

Heck I know I need help in feedback and that most can’t afford or want to pull in favours to look at their deck, so developing a multi-personality disorder with “Alex” as the bad guy can help you to give yourself a hard time for free.

You can also hire me/team for feedback, but I care about you being able to think for yourself and do stuff for free.

The main header should be larger.

“Total medical spend…” should be half the size. On top should be the point.

I would structure this slide as two boxes. You address two separate points and have two clear messages under the main slide header.

Didn’t mention this before. The logo should be on the bottom left and a little smaller. Footer stuff is not important. It’s style shizzle.

This is a brilliant slide with structure and spacing. Well for banking or consulting standards.

It is a bit wordy. I haven’t read the words.

I’m confused now. They have started sticking the USA map in the top left with some states filled in. That’s weird and not needed. Don’t get fancy.

Headers are an ok start. I would force them to get to the actual point in each of the 4 boxes.

For most founders, this is a slide to aspire to, but well, I have my personal view of the ideal structure. Honestly, compared to most decks, this is pitch deck porn on a slide if I was not to nitpick.

Cool. This is what a Waterfall chart is to show their unit economics. If you want to make a slide like this check out my slide templates here. Making waterfall charts with negative space is not simple at all. Once you have the chart you can easily overlay content, but making it is hard.

I do not like the three little icons in the white diamonds they have on the x-axis.

I would widen the chart with two more steps and explain them quickly and consistently in the structure below.

It is a solid slide, but again I can improve. I am aware I am being an apologist as I write, it’s because I want to balance good examples and perfection. If you made a slide like this I would give you a gold star- I just know even a slide like this can be improved.

Straight off, kill the stethoscope on the left. No stock images.

Fantastic structure. Like the little arrows.

There are numbers.

There are sources at the bottom.

Headers on the top.

Levers are a nice touch.

I didn’t read the content, but they have the right idea.

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