Simply months after making its public debut, Livongo Founder Glen Tullman’s latest startup not too long ago raised one other $58 million in funding. Since Transcarent emerged from stealth in March, the startup has already raised $98 million in funding, netting it a valuation of about $500 million, based on Insider.
Basic Catalyst and 7wireVentures — the place Tullman is a managing associate — led the collection B spherical. Company ventures funds Leaps by Bayer and Merck World Well being Innovation Fund additionally joined as new buyers.
“Rising prices within the self-insured employer area, together with the acceleration of broad adoption of digital care as a result of pandemic, have underscored the necessity for brand new and completely different well being profit fashions,” Invoice Taranto, president and basic associate of the Merck World Well being Innovation Fund, stated in a information launch.
Transcarent will use the funds to broaden its service to extra self-insured employers. A part of the explanation for the speedy fundraise may also be chalked as much as a way of urgency because the pandemic has highlighted the significance of well being advantages for these firms.
“We consider the subsequent 18 months will outline the subsequent 5 years in healthcare, and far of that innovation facilities round two phrases: expertise and alignment,” Tullman stated in a information launch. “There’s a rare quantity of friction in immediately’s healthcare journey which makes a person’s expertise extra complicated, complicated, and dear than ever. Siloed level options and navigators don’t enhance folks’s expertise and don’t handle the shortage of alignment with the true payers in healthcare – employers and the individuals who work for them.”
Tullman began Transcarent after promoting Livongo to Teladoc final yr, in a deal that valued the corporate at $18.5 billion. In a crowded subject, he stated the corporate is completely different from its rivals in that it strikes risk-sharing agreements with employers in alternate for serving to their workers navigate their well being advantages. Transcarent claims it has already helped a good portion of its customers attain a special analysis or keep away from pointless surgical procedures.
For instance, the startup connects workers to non-public well being guides, second opinions from physicians, treatment assessment and digital bodily remedy companies. It additionally acquired Bridge Well being, an organization that negotiates bundled companies with surgeons and Facilities of Excellence.
Picture credit score: erdikocak, Getty Pictures