Accolade sets terms for IPO, aims to raise up to $211M in Seattle’s first public offering this year June 24, 2020

On June 24, 2020, Accolade set the terms for its IPO. The startup will price 8.75 million shares at between $19 and $21, raising as much as $211 million. If it succeeds in raising that amount of money, its valuation will rise to around $1 billion. It will trade on the Nasdaq exchange under the ticker ACCD.

Accolade helps employees navigate their healthcare benefits using a range of technologies from machine learning to mobile apps. Employers are charged a subscription fee based on the number of total employees.

“The U.S. healthcare system is complex and places significant strain on consumers, who struggle to effectively use their healthcare and benefits, make informed decisions about their health, and navigate the fragmented network of providers and third-party benefit programs,” Accolade said in its latest S-1 registration filing. “The recent onset of the COVID-19 global pandemic has only served to further exacerbate the complexity and frustration faced by consumers as they seek information about the availability and accuracy of virus and antibody testing or face limits on their ability to access traditional care safely.”

Accolade estimates that its total addressable market to be approximately $24 billion. It currently has 58 corporate customers, giving it 1.6 million members across a variety of industries. Its customer base has remained steady during the coronavirus crisis, and it added the Defense Health Agency as a client last month.

Over the years, Accolade has raised more than $230 million. Accretive has a 26.9% stake, followed by Andreessen Horowitz at 16.2%, Carrick Capital at 9%, and Comcast Ventures at 6.9%. Accolade CEO Rajeev Singh owns a 6.4% stake. Other investors include Madrona Venture Group, McKesson Ventures, Cross Creek Advisors, and Madera Technology Partners.

The company’s employee numbers have gone from 759 people as of February 28, 2017, to about 1,250, split between its two headquarters in Philadelphia and Seattle, as of February 29, 2020. Most of Accolade’s employees have been with the company fewer than three years due to its rapid growth.

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