Covid Test Startup Cue Health in Talks for $2 Billion-Plus Valuation

Cue Health, a startup that makes handheld coronavirus tests, is in discussion with investors about a new round of capital that could boost the company’s valuation to more than $2 billion, or at least four times the valuation in a fundraising just six months ago, according to two people familiar with the discussions.

The San Diego startup’s molecular diagnostic technology delivers test results to its accompanying mobile app in as little as 20 minutes, leading to deals with the Defense Department and the National Basketball Association. The new capital would help it expand manufacturing of its test cartridges as coronavirus deaths in the U.S. surge. Cue’s quick pace of capital raising is the latest sign of an investor stampede toward startups whose business has accelerated during the pandemic.