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, in line with Insider.
Normal Catalyst and 7wireVentures — the place Tullman is a managing companion — led the sequence B spherical. Company ventures funds Leaps by Bayer and Merck International Well being Innovation Fund additionally joined as new traders.
“Rising prices within the self-insured employer house, together with the acceleration of broad adoption of digital care as a result of pandemic, have underscored the necessity for brand new and totally different well being profit fashions,” Invoice Taranto, president and basic companion of the Merck International Well being Innovation Fund, mentioned in a information launch.
Transcarent will use the funds to broaden its service to extra self-insured employers. It at present has greater than 1 million members and greater than 100 employers as shoppers, a few of which it received by way of its acquisition of BridgeHealth, an organization that negotiates bundled providers with surgeons and Facilities of Excellence.
Shifting ahead, the corporate will concentrate on bringing collectively digital well being options and making healthcare simpler for sufferers to navigate. In some circumstances, that may imply integrations with companions, and in different circumstances, it is going to imply acquisitions, Tullman wrote in an emailed assertion.
“Given the market response to Transcarent’s providing and strategy, we will likely be additional alongside after one yr than Livongo was after three years,” he wrote.
Tullman began Transcarent after promoting Livongo to Teladoc final yr, in a deal that valued the corporate at $18.5 billion.
In a crowded area, he mentioned the corporate is totally different from its rivals in that it strikes risk-sharing agreements with employers in change for serving to their staff navigate their well being advantages. For instance, the startup connects staff to private well being guides, second opinions from physicians, treatment evaluation and digital bodily remedy providers.
“We imagine the following 18 months will outline the following 5 years in healthcare, and far of that innovation facilities round two phrases: expertise and alignment,” he mentioned in a information launch. “There’s a rare quantity of friction in immediately’s healthcare journey which makes a person’s expertise extra complicated, advanced, and dear than ever. Siloed level options and navigators don’t enhance folks’s expertise and don’t handle the dearth of alignment with the true payers in healthcare – employers and the individuals who work for them.”
Picture credit score: erdikocak, Getty Pictures