Google is investing $100 million in telehealth provider Amwell, as the telehealth startup files for IPO

The telehealth sector continues to gain steam. Thanks in part to new government policy that makes it easier for doctors to safely provide necessary care to patients remotely by means of telecommunications technology amid the coronavirus pandemic.

Today, Amwell, formerly known as American Well, announced it has received $100 million investment from Google Cloud as part of a multi-year, strategic partnership to deliver transformative telehealth solutions across the global healthcare ecosystem.

The investment comes on the heels of Amwell’s IPO announcement. Amwell filed for an initial public offering (IPO), the Boston-based telemedicine startup announced late Monday. Early this month, we wrote about Amwell’s largest competitor, Teladoc, after it acquired Livongo for $18.5 billion to help people everywhere get high quality and personalized healthcare.

As part of the partnership, Google Cloud selects Amwell as its preferred global telehealth platform partner, and Amwell selects Google Cloud as its preferred global cloud platform partner and will migrate its video performance capabilities onto Google Cloud’s superior cloud platform for both new and existing customers around the globe.

Amwell also agreed to move parts of its business from Amazon Web Services, which it currently uses, to Google Cloud. In essence, Google cloud will now become Amwell’s “preferred global cloud partner.” Amwell will also move some of its video performance capabilities to that platform, the companies said in a press release. The two companies will also cooperate on technology and build out a dedicated sales effort to expand Amwell’s footprint in the sector.

Google Cloud and Amwell® today announced that they have entered into a multi-year, strategic partnership to deliver transformative telehealth solutions across the global healthcare ecosystem. Together, the companies will endeavor to expand access to virtual care, improve patient and clinician experiences, and leverage their unique capabilities to deliver new, differentiated healthcare solutions—across the continuum of care.

Google Cloud’s $100 million investment will enable Amwell to evolve and scale its telehealth portfolio to serve the needs of providers, insurers, and patients within current and new markets. Google Cloud’s investment will be a concurrent private placement at a purchase price that will be the same as the price to the public in Amwell’s IPO and will be contingent upon the closing of its IPO, the company said.

In its IPO filing, the company said revenue had increased 77% in the first six months of 2020, compared with the same period a year ago, from $69 million to $122 million. However, its net loss nearly tripled over the same period, growing from $41 million in the first six months of 2019 to $111 million in the first half of this year.

Founded in 2006 by Ido Schoenberg and Roy Schoenberg, Amwell is one of the leading telehealth platforms in the United States and globally, connecting and enabling providers, insurers, patients, and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that digital care delivery will transform healthcare.

Amwell helps patients to see a doctor from home or on-the-go. Its telehealth app connects patients to board-certified, experienced medical providers. The company provides 24/7 healthcare support, with on-demand service or scheduled appointments.

The Company offers a single, comprehensive platform to support all telehealth needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. With over a decade of experience, Amwell powers telehealth solutions for over 2,000 hospitals and 55 health plan partners with over 36,000 employers, covering over 80 million lives.