AI healthcare startup Forward shuts down after burning through $400 million from investors

Forward, a once-promising healthcare startup that aimed to revolutionize care with its “doctor-in-a-box” modules, is shutting down. The closure comes just a year after the San Francisco-based company raised $100 million in funding, bringing its total fundraising to nearly $400 million.

A source familiar with the matter told The Information that the shutdown would take effect Tuesday, with all of Forward’s nearly 200 employees losing their jobs. The company confirmed the closure in a letter posted on its website, stating that it would cancel scheduled visits, shut down all locations, and immediately disable its mobile app. Forward also pledged to assist patients in transitioning their care, providing an email address for support until December 13.

In a message posted on its website, Forward said:

“We regret to inform you that we will be closing our Forward locations, canceling scheduled visits, and shutting down our mobile application effective immediately. We know this news is abrupt, so we are committed to helping you navigate your care transition in the days to come. Starting today you will no longer have access to the Forward app, but our medical team is available at clinical@goforward.com to support your care until December 13, 2024.”

Founded in 2017 by former Google employee Adrian Aoun, Forward set out to provide healthcare without relying on traditional health workers. The startup later pivoted to a subscription-based care model, offering $99-per-month access to tech-enabled clinics and its futuristic “CarePod” modules. The pods used artificial intelligence, telehealth, and biometric sensors to address conditions such as diabetes, hypertension, anxiety, and depression.

The sleek pods, often placed in malls, gyms, and office buildings, were designed to make healthcare more accessible by combining automation with staffed clinics. Forward raised significant funding from high-profile investors, including SoftBank, Founders Fund, and Khosla Ventures. It reached a $1 billion valuation in 2021, with SoftBank leading a $225 million Series D round that March.

The Beginning of the End

Despite its ambitious vision, Forward struggled to sustain its operations. In July 2022, the company laid off 5% of its workforce, signaling early signs of financial strain.

In November 2023, Forward raised $100 million to expand its CarePod network across multiple states. However, the company faced mounting challenges as it burned through cash in pursuit of growth. On Tuesday, Forward announced its closure, canceling all scheduled patient visits and halting operations immediately.

The company’s letter emphasized its commitment to helping patients during the transition, though it offered no details about the factors leading to its shutdown. Founder and CEO Adrian Aoun and co-founder Ilya Abyzov declined to comment on the closure.

An Expensive Lesson

Forward’s collapse underscores the risks associated with high-growth healthcare startups attempting to balance innovation with operational sustainability. While its “doctor-in-a-box” concept initially attracted attention and funding, the company ultimately fell short of achieving its goal to redefine healthcare access.

For investors, employees, and patients, Forward’s closure marks the abrupt end of a bold but unsustainable experiment in modern healthcare.