Livongo

Livongo Health sold chronic condition management programs to employers and health plans, combining connected devices such as cellular blood glucose meters with personalized digital guidance and round the clock access to coaches. Its programs covered diabetes, hypertension, weight management and behavioral health. The company was incorporated in Delaware in October 2008 as EosHealth and renamed Livongo Health in September 2014, with Glen Tullman, a managing partner at 7wire Ventures, as executive chairman. It was headquartered in Mountain View, California. By March 31, 2019 it had about 164,000 diabetes members, and revenue grew from $30.9 million in 2017 to $68.4 million in 2018.

The S-1 details the later preferred rounds. In April 2016 Livongo sold $49.5 million of Series C preferred, in March 2017 $52.5 million of Series D, and in April 2018 $105.0 million of Series E. The Series E buyers included Kinnevik ($41.4 million), General Catalyst ($32.0 million), 7wire Ventures ($7.9 million) and the Merck Global Health Innovation Fund ($6.7 million). Total liquidation preference on its preferred stock was $237.65 million at the end of 2018. Before the IPO, General Catalyst held 25.4%, Kinnevik 12.0%, Kleiner Perkins 8.9%, the Merck fund 7.6% and 7wire 7.1%. Hemant Taneja of General Catalyst and Christopher Bischoff of Kinnevik sat on the board.

Livongo priced its IPO at $28 per share on July 24, 2019, listing on the Nasdaq Global Select Market as LVGO and raising about $355 million. Kinnevik, Sapphire Ventures and a General Catalyst vehicle agreed to buy the Merck fund's 6.0 million shares alongside the offering. On August 5, 2020 Teladoc Health agreed to acquire Livongo in a cash and stock deal that CNBC reported valued it at $18.5 billion, and the merger closed on October 30, 2020, with Livongo holders receiving 0.5920 Teladoc shares plus $11.33 in cash per share. Teladoc later warned of goodwill impairment tied to the deal.

Livongo shows how quickly a pandemic-era rerating could turn a digital health IPO into a large exit. Its backers held the stock for about fifteen months between listing and the Teladoc close, and CNBC noted that Teladoc and Livongo had been worth a combined $8.5 billion at the start of 2020, less than half the price Teladoc agreed to pay for Livongo alone. General Catalyst and 7wire, which entered before the Series E, kept the largest stakes into both events.