# Folx Health Financial Model LGBTQ+-specialized virtual healthcare and wellness platform serving the LGBTQIA+ community across DTC consumer and enterprise employer channels. - Canonical: https://finamodel.com/startups/folx-health - Excel download: https://finamodel.com/startup-models/folx-health.xlsx - Category: Health-tech - Model type: SaaS ARR / Valuation - Funding round: Series B - Funding: $30M - Founded: 2022 - Geography: US; available in 33 states at time of deck with expansion to all 50 in progress [DECK slide 09]. - Customer: B2C ## About the company FOLX Health provides LGBTQ+-specialised virtual care and wellness through consumer memberships and employer benefits. Its care proposition gives patients access to services designed for their specific health needs, rather than asking them to navigate generalist care systems. The dual-channel strategy combines direct patient acquisition with enterprise distribution to covered employees. DTC membership economics depend on conversion and retention, while employer contracts add covered lives and a lower-touch distribution route with different utilisation and renewal dynamics. The model separates DTC members from employer clients and covered lives, forecasting ARPU, care utilisation, retention, and expansion. It includes clinician capacity, pharmacy and fulfilment costs, acquisition by channel, customer success, gross margin, operating burn, and runway. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - End-to-end virtual care platform: primary care, gender-affirming care, sexual and reproductive health, behavioral health (Q2'22 launch). - LGBTQ+-specialized, trauma-informed clinician network; informed consent model. - Proprietary clinical protocols, referral network and care advocacy, personalized training/education, content and community. - Dual go-to-market: DTC (individual memberships) + Enterprise (employer benefits / DEI offering). - Behavioral health access: LGBTQIA+ group-based care, mental health services, learning programs, community content. - Mission statement: "the leading health and wellness platform for LGBTQIA+ care, providing end-to-end services across the spectrum of community needs". ## Market - 1 in 10 US adults openly identify as LGBTQ+. - 1 in 5 Gen Z identify as LGBTQ+. - 60% increase in percentage of population identifying as LGBTQ+ between 2012 and 2021. - US LGBTQ+ community represents $1T in purchasing power. - LGBTQ+ median household income $92K vs. $86K non-LGBTQ+ (+7%); 61% dual-employed households vs. 50% (+7%); 32% bachelor's degree households vs. 25% (+10%). - Kearney: global LGBTQ+ community would be the fourth-largest economy in the world. - No explicit TAM/SAM/SOM breakdown provided in deck. ## Revenue model - **DTC channel**: Individual member subscriptions for virtual care plans (pricing not specified in deck). Members self-enroll via folxhealth.com. - **Enterprise/B2B channel**: Employer benefits packages - companies purchase FOLX access for LGBTQ+ employees as a DEI/health benefit; sold to HR/benefits buyers. - Slide 16 mentions page number "26" suggesting this is a longer version of the deck; no revenue line items or pricing tiers visible in the provided slides. - Behavioral health, content, and community services appear to be bundled into the platform rather than sold separately. ## Traction & metrics - NPS: 85+. - 100% of members feel supported by their FOLX clinician. - 98% of members feel they are making progress toward their health goals. - 71% of FOLX members avoided seeking healthcare prior to finding FOLX for fear of discrimination. - Press: 382 total placements in 2021; 10.7B total impressions. - Media recognition: Time 100 Most Influential Companies 2022; Fast Company Most Innovative Companies 2022; Business Insider #11 on 25 fastest-growing DTC brands. - No revenue, ARR, member count, growth rate, or GMV numbers disclosed in deck. ## Competition / moat - Claim: operates the largest virtual network of LGBTQ+-specialized clinicians. - Moat: proprietary clinical protocols; trained/employed clinician network (vs. marketplace model); community brand and NPS 85+; media brand (10.7B impressions); first-mover in LGBTQ+-specific virtual care. - No explicit competitive matrix or named competitors in deck. ## Recommended financial model - **Archetype + why**: Dual-channel digital health subscription model - DTC membership ARR + B2B enterprise contract ARR. Healthcare platforms with both self-pay consumer and employer-benefit tracks are best modeled as two separate revenue streams feeding into a consolidated P&L, with separate CAC and payback logic per channel. No revenue data is in the deck so the model must be built on assumption-first logic. - **Forecast horizon & granularity**: 5 years (Year 1–5); monthly granularity in Year 1–2, annual from Year 3 onward. Rationale: early-stage growth tracking requires monthly cohort visibility for churn and payback calculation. - **Key drivers & assumptions**: - US LGBTQ+ addressable population: ~33M adults (10% of ~330M US adults); serviceable in 33 states = ~22M initially, growing to 50 states - DTC member count: seed from available benchmarks for early-stage telehealth DTC; no deck figure - DTC monthly subscription price: ~$50–$100/month (comparable LGBTQ+ telehealth market); no deck figure - DTC monthly churn rate: 3–6%/month (chronic-care DTC benchmark; FOLX serves ongoing HRT/gender-affirming needs suggesting lower churn) - DTC CAC: $150–$300 (DTC telehealth benchmark); no deck figure - DTC LTV: derived from ARPU / churn rate; target LTV:CAC > 3x - Enterprise contract size: PEPM (per employee per month) structure, $10–$25 PEPM; number of enterprise logos not disclosed - Enterprise logos ramp: start with pilot cohort, add N logos/quarter; no deck data - Clinician capacity and headcount: clinicians per member ratio (e.g., 1:200); key cost driver - Gross margin: ~40–60% after clinician cost (telehealth benchmark); no deck figure - S&M spend as % of revenue: 30–50% in early years; declining - Behavioral health launch Q2 2022: add new service line revenue in Year 2+ assumptions - Geographic expansion: 33 states → 50 states; revenue uplift modeled as addressable population step-up - **Scenarios (Base / Bull / Bear - which variables flex)**: - **Base**: DTC membership grows at steady rate with 4% monthly churn; enterprise adds 5 logos/quarter at mid-range PEPM; gross margin 50% - **Bull**: Lower churn (2%) from high NPS (85+); enterprise accelerates (10 logos/quarter); behavioral health monetizes as separate upsell tier - **Bear**: High CAC environment (DTC paid digital expensive for niche); churn 7%+; enterprise sales cycle extends; regulatory risk in 1–2 states slows expansion - **Required sheets / outputs**: - Assumptions dashboard (all inputs centralized) - DTC membership waterfall (new adds, churn, net adds, ending members by month) - Enterprise ARR schedule (logos, PEPM, ACV, churn) - Revenue build (DTC + Enterprise, by service line: virtual care, behavioral health) - P&L (Revenue → Gross Profit → EBITDA) - Headcount plan (clinicians, clinical ops, G&A, S&M) - CAC / LTV / payback analysis by channel - Cash flow and runway (to answer "how long does this raise last") - Scenario toggle (Base / Bull / Bear) ## Frequently asked questions ### Is the Folx Health financial model free? Yes. The Folx Health model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.