Failed 2023

    Outcome Health

    Fabricating advertising metrics to justify $500M in investment is fraud. Both co-founders were convicted.

    Founded → Closed

    2006 → 2023

    Funding Raised

    $500M

    Industry

    Healthcare/AdTech

    Country

    USA

    IdeaProof AI Failure Score

    82/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    50
    Burn Rate Risk
    60
    Founder Risk
    95

    Full Analysis

    Outcome Health placed screens in doctor's offices to display health-related advertising. The Chicago company raised $500M at a $5.5B valuation. But co-founders Rishi Shah and Shradha Agarwal were convicted of defrauding investors by overbilling pharmaceutical clients and fabricating screen installation numbers. The company had charged advertisers for screens that didn't exist. Both founders were sentenced to prison in 2023.

    Could This Failure Have Been Prevented?

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