Redesign Health, a company that builds, launches and finds funding for other healthcare startups, has closed a $175 million investment for a new fund focused on igniting the creation of healthcare companies.
Declaration Partners, Euclidean Capital and True North Advisors participated in the round.
WHAT IT DOES
Redesign has launched more than 60 health tech companies since its founding in 2018, including cancer care-coordination platform Jasper Health, employee benefits platform Beanstalk Benefits, tech-enabled dementia care platform Harmonic Health, weight-management company Calibrate, cardiology care platform CardioOne, mental health company UpLift and home-based care company MedArrive.
The company will use the funds to launch companies that address the healthcare labor shortage, accelerate value-based and longitudinal care, advance healthcare interoperability, prepare for the aging population, improve health equity, expand sites of care, expand the insured population, and drive personalization and consumerization in healthcare.
It will also work to develop AI/genAI technologies to advance its goals of affecting those eight key areas.
“This new fund represents a powerful opportunity to accelerate healthcare transformation at a time when the industry is at a pivotal crossroads,” Neil Patel, head of ventures at Redesign Health, told MobiHealthNews in an email.
“With advances in AI, patient demand for better care, and the urgent need for cost containment, there has never been a better moment to build solutions that address healthcare’s biggest challenges. Our model is designed to empower founders with the resources, expertise, and network they need to navigate these complexities and create companies that deliver lasting impact for patients, providers, and payers alike.”
THE LARGER TREND
In 2022, Redesign garnered $65 million in a Series C funding round led by General Catalyst.
Other participants included CVS Health Ventures, UPMC Enterprises, Eden Global Partners, Euclidean Capital, Samsung Next, TriplePoint Capital and Declaration Partners. According to reporting by Fast Company, the Series C brought Redesign’s post-money valuation to $1.7 billion.
The company announced a $250 million raise in March 2021.
Around this time last year, Patel told MobiHealthNews that he expected 2024 to include “a continuation of insider rounds for Series A+ companies, either flat or down, through the first half of the year, with the second half of the year picking back up across the board.”
After seeing venture funding take a dive in 2023, he also anticipated 2024 would show a strong early seed funding environment as investors could get investor-friendly terms and provide a sufficient runway to get through the down market.
According to Rock Health’s recent report, 2024 has seen disciplined investment and strategic activity, suggesting investors are making calculated bets on fewer companies. In the third quarter of this year, the digital health sector saw $2.4 billion in venture funding across 110 deals, bringing year-to-date financing to $8.2 billion.
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