Now here is a tale from the glory days of epidemic investing, as the Feds pumped trillions into the economy and a lot of it went to investing, some to really solid investments like cryptocurrency (haha), but some into more dangerous sectors, like for example health care “digital health” companies. This firm, Carbon Health, raised hundreds of millions of dollars, at one point had a multi-billion dollar valuation, overpaid for several acquisitions, announced grandiose plans to be in every part of health care delivery and management, and so on. Then reality hit, layoffs came, business lines are being closed, and I am sure the company is still losing money by the bucketfuls. Along with the layoffs, Carbon got a rescue funding led by CVS of $100 million. I suspect the valuation was way below prior rounds. The supposedly smart institutional investors who piled into companies like this were nothing but fools. (Carbon Story) (Carbon Story)
