# Well Dot Financial Model

AI-powered, consumer-grade health engagement platform sold B2B to employers/health plans to improve member health and reduce healthcare costs.

- Canonical: https://finamodel.com/startups/well-dot
- Excel download: https://finamodel.com/startup-models/well-dot.xlsx
- Category: Health-tech
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $40M
- Founded: 2020
- Geography: Not explicitly stated; appears US-focused [DECK slide 2].
- Customer: B2B2C

## About the company

Well is an AI-powered health-engagement platform sold to employers and health plans. It uses consumer-grade experiences to improve member behaviour and reduce healthcare costs for institutional buyers, making sustained engagement central to its value proposition.

The commercial model depends on client wins, covered members, PMPM fees, adoption, and renewal. Outcomes incentives can create additional upside or risk, while implementation and integration influence how quickly an employer or plan can make the service available to eligible populations.

The model forecasts clients, covered members, PMPM fees, engagement, outcomes incentives, implementation, and renewal. It includes member-support and technology costs, enterprise sales, customer success, gross margin, operating cash flow, cash 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

Well is a mobile-first health engagement platform that delivers personalized, AI-orchestrated health journeys, concierge support (Health Guides + nurses), virtual health services (telehealth, behavioral health, Rx savings), and incentives/rewards to drive member action.

Key differentiators:
- Consumer-grade UX applying Netflix/Amazon/Spotify personalization principles to health
- Clinically-robust content: 200+ distinct interventions across 50+ medical/behavioral health topics
- AI Health Engine: ingests EHR + member data → scores health/cost opportunity → orchestrates personalized engagement → delivers incentives → closed feedback loop
- Whole-health coverage: physical, mental, condition management, and wellness in one platform

ROI for buyers comes from four levers: preemptive engagement of high-risk members, driving utilization of proven programs, sustaining engagement in clinical programs, and "swimming upstream" on cost.

## Revenue model

Not explicitly stated. Inferred from B2B model and standard digital health market norms:
- Per-member-per-month (PMPM) fee paid by employer or health plan, covering all enrolled members - the dominant pricing model for wellness/engagement platforms in this space.
- Buyers are self-insured employers and/or health plans (indicated by language around "employer benefits," member populations, and ROI framing directed at employers).
- Potential upsell for add-on virtual health services (telehealth, BH, condition management) layered on top of base engagement platform.
- No ACV, PMPM rate, or contract structure figures are shown.

## Traction & metrics

- Illustrative member cost savings opportunity cited: >$6K per member per year (Mia example, explicitly labeled "Illustrative")
- App UI shows stats: 1,470 and 8,400 (context unclear - likely steps or points in the UI mockup, not company-level KPIs)
- No revenue, ARR, customer count, member lives covered, growth rates, or NPS figures are disclosed in the deck.

## Competition / moat

Not explicitly addressed as a competitive landscape slide. Moat articulated through differentiation:
- Proprietary AI Health Engine with closed feedback loop
- 200+ clinical interventions built in-house by physicians, psychologists, and public health experts
- Consumer-grade personalization engine (behavioral economics + dynamic incentives)
- Depth of integrated whole-health coverage vs. point solutions

## Team & funding ask / use of funds

---

## Recommended financial model

- **Archetype + why:** B2B SaaS / health-tech PMPM model. Revenue scales with number of employer/health-plan customers × covered member lives × PMPM rate. This is the standard archetype for digital health engagement platforms sold to self-insured employers. A 3-statement model is appropriate if funding/capitalization context emerges; otherwise a revenue/margin build is sufficient for an early-stage operating forecast.

- **Forecast horizon & granularity:** 5 years (Year 1–2 monthly, Year 3–5 annual). Monthly granularity needed in early years to track member ramp and churn within employer accounts.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| PMPM rate (base platform) | $3–$8 PMPM |
| Add-on virtual health PMPM | $1–$3 PMPM |
| Average employer contract size (lives) | 2,000–10,000 members |
| Gross margin | 60–75% |
| Member churn / contract renewal rate | 80–90% annual renewal |
| S&M as % of revenue | 25–35% |
| R&D as % of revenue | 20–30% |
| G&A as % of revenue | 10–15% |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - Bear: Slow logo adds, low PMPM rate (competitive pricing pressure), 65% gross margin (more human concierge reliance)
  - Base: Moderate logo growth, $5 PMPM blended, 70% gross margin, 85% renewal
  - Bull: Faster logo adds, upsell to virtual health add-ons lifts blended PMPM to $8+, 75% gross margin, 90%+ renewal

- **Required sheets / outputs:**
  1. Assumptions - PMPM rate, logo ramp, avg. lives/logo, gross margin, opex ratios
  2. Revenue Build - logos × lives × PMPM by month/year; separate base + add-on tiers
  3. P&L - Revenue → Gross Profit → EBITDA → Net Income
  4. Headcount & Opex - Health Guides/nurses (COGS), S&M, R&D, G&A
  5. Cash Flow & Runway - burn rate, cash balance, months of runway
  6. KPI Dashboard - ARR, net revenue retention, lives covered, PMPM, gross margin %, burn multiple

## Frequently asked questions

### Is the Well Dot financial model free?

Yes. The Well Dot 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.