We got a look at the pitch decks that buzzy $40 million startup HealthJoy used to snag early investors and then execute a huge strategic shift
The startup used this slide deck through roughly the second or third quarters of 2015.
HealthJoy was initially focused on the individual health insurance market, selling to people who were getting their coverage through the Affordable Care Act.
This slide shows how the startup described itself as a stabilizing force for consumers trying to find their way around an opaque market.
During this early period, HealthJoy raised about $6 million total.
HealthJoy began by emphasizing the promise and business potential of the new market.
The company had just been through its first selling season, signing up around 9,000 new members. "Spirits are high, we're growing," HealthJoy President Morse-Schindler recalls. "Things are good."
Large deductibles and narrow networks of doctors are hallmarks of ACA plans, because they are a way of keeping costs down.
HealthJoy also pointed to wider problems of waste and inefficiency in the US healthcare system.
HealthJoy pitched its offering as a solution for individuals trying to make sense of opaque health plans.
HealthJoy told potential investors that many new members covered by the Affordable Care Act would have trouble understanding their plans — an opening for the company's business model.
This slide shows how the company envisioned consumers using its offering, from saving money to finding doctors.
Saving users money is still a core part of what HealthJoy does, Morse-Schindler says, but in the employer-sponsored insurance market it's more focused on the employee's overall benefits package, from the medical plan to optimizing medications.
Though the startup today contracts with employers not individuals, ultimately workers also benefit from lower costs, as they pay for healthcare both out of their wages as well as out of pocket, HealthJoy says.
HealthJoy connects users with services like price-comparison tools for prescription medications.
The platform today looks different, yet it's the same basic offering, Morse-Schindler says.
This slide details a success story from a customer that the company was sharing with investors.
The company no longer works with customers in this area, focusing wholly on the employer-sponsored group market.
HealthJoy also outlined its business model for investors.
This slide from the early pitch deck compares HealthJoy with potential rivals.
This slide deck breaks down how HealthJoy started off making money from subscriptions purchased by individual users, with the intention of also generating revenue by referring patients to "preferred partners."
HealthJoy now charges employers a fee instead. The company declined to share details of how much it charges.
The company also outlined for investors where their funds would be put to work.
In the 2015 pitch deck's appendix, HealthJoy's founders also touted their expertise, including the 2012 acquisition of their prior company, OpenInstall.
This early pitch deck also included statistics on how frequently users employed its platform.
Digital health companies often struggle to get people to use their tools. "Engagement is the number one issue that keeps employers up at night," the NBGH's Marcotte told Business Insider.
When HealthJoy shifted its strategy, this new pitch deck, from April of 2016, detailed the change.
HealthJoy is centered on helping to close a very real knowledge gap in healthcare.
"People don't know what they're enrolled in, they don't know what their medical plan is. They don't necessarily know how to make good decisions. It's just a very fragmented experience," Morse-Schindler told Business Insider. The company aims to change that with its platform, which employs an artificial intelligence-enabled virtual assistant, "JOY," as a guide.
Employers, in return, get a birds-eye perspective on their healthcare spending.
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