Thrive-Backed Startup Capsule Could See Its Valuation Cut in Half

Capsule, once valued at $1.2 billion, is in talks to raise money at a $500 million valuation. Photo by Capsule.

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Capsule, an online prescription delivery startup that rode a wave of pandemic-driven growth to a $1.2 billion valuation, is in talks to raise money at a dramatically lower value of about $500 million, according to people familiar with the matter.

The New York-based startup, which is burning cash, has been in discussions for a new $100 million funding round led by Cox Enterprises, these people said. That valuation is the same as the revenue Capsule expects to generate in the next 12 months, said one person with knowledge of the talks.