Two Israeli brothers built a telehealth platform, waited 14 years for the world to care, got their moment during COVID, went public at $10 billion, and then watched the stock drop 97% when people went back to seeing their actual doctor. Amwell's enterprise play — powering health systems' telehealth rather than competing with them — is the right strategy, but the post-pandemic hangover has been brutal. Telehealth isn't dead, but the "every doctor visit will be virtual" thesis definitely is.
Founded
2006
HQ
Boston, MA
Total Raised
$900M+ (IPO in 2020)
Founder
Roy Schoenberg, Ido Schoenberg
Status
Public (NYSE: AMWL) — market cap approximately $300 million (down from $10 billion peak)
Website
www.amwell.comTHE ORIGIN STORY
Brothers Roy and Ido Schoenberg (both Israeli-born physicians) founded American Well (later Amwell) in 2006 with the thesis that most doctor visits didn't require physical presence. For 14 years, telehealth was a niche product — health systems were slow to adopt, insurance reimbursement was inconsistent, and patients preferred in-person visits.
Then COVID-19 hit in March 2020, and overnight, telehealth went from niche to essential. Amwell's platform usage surged 3,400% in the first weeks of the pandemic.
WHAT THEY ACTUALLY DO
Telehealth platform connecting patients with doctors via video visits. Amwell operates as infrastructure — selling its telehealth platform to health systems, insurers, and employers who white-label it under their own brand.
Revenue comes from platform subscriptions (SaaS fees to healthcare organizations) and visit fees. Unlike Teladoc (which operates its own doctor network), Amwell primarily powers OTHER organizations' telehealth.
THE PRODUCTS
Amwell Converge (enterprise telehealth platform for health systems), Amwell Automated Care Programs (AI-guided clinical workflows), Psychiatric Care (behavioral health telehealth), Urgent Care (on-demand video visits), and white-label telehealth solutions for insurers and employers.
HOW THEY GREW
Enterprise platform over consumer app. Amwell's strategy is to be the infrastructure layer — powering Cleveland Clinic's telehealth, Anthem's virtual visits, and Walmart Health's digital services — rather than competing for individual patients.
The Converge platform integrates telehealth with electronic health records, enabling a hybrid care model. Automated care programs (AI-assisted clinical workflows) reduce provider workload and improve margins.
THE HARD PART
The post-COVID telehealth crash. Telehealth visits surged during lockdowns but declined sharply as restrictions lifted.
Patients returned to in-person visits for many conditions. Amwell's stock dropped over 90% from its 2021 peak as the "telehealth is the future" narrative collided with "patients actually prefer seeing their doctor in person" reality.
Revenue growth stalled, and the company has struggled to reach profitability.
MONEY TRAIL
Series C
2018 · Led by Allianz X, Teva Pharmaceutical
$291M raised
IPO
2020 · Led by NYSE public offering
$742M raised
Google Investment
2021 · Led by Google Cloud
$100M raised
WHO BACKED THEM
Google, Allianz X, Teva Pharmaceutical, and various healthcare systems invested before the 2020 IPO.
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