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Private investors in the health services startup Cityblock Health have bought shares from employees as part of a tender offer that will allow some employees to turn equity into cash, according to two people familiar with the matter.
The tender offer closed earlier this month, according to one source. It was led by Cityblock’s existing investors, the other source said. Both sources spoke on condition of anonymity because the offer was confidential.
Cityblock last raised $400 million in 2021 through a mega late-stage funding round led by SoftBank, reportedly bringing the company’s valuation up to $5.7 billion. The raise came just a few months after a $192 million Series C extension round. Other investors included Tiger Global, Kinnevik, Maverick Ventures, General Catalyst and Thrive Capital.
The company declined to comment on the number of shares sold and their value. Employee tender offers can be a way for workers at startups to turn some of their equity grants into cash, instead of having to wait for an initial public offering.
The startup provides care to underserved populations on Medicaid and lower-income Medicare plan members. It also connects patients with community health partners who help patients find access to things like healthy food and safe housing, as those needs affect health outcomes.
Cityblock cut 155 workers, or around 12% of its workforce last summer. The layoffs were necessary to help the company tackle the next phase of growth as the company matures, CEO and co-founder Toyin Ajayi said in a blog post.