Redesign Health Gets Another Boost in Funding Startups to Innovate Care
Redesign Health has taken a different approach to fueling innovation in health care. Unlike most venture capital funds, Redesign Health focuses solely on health care companies whose innovative solutions can be scaled. In other words, health care is not a component of its business — it is the business.
The company recently raised $65 million in its latest funding round, led by General Catalyst, and included investments from CVS Health Ventures, UPMC Enterprises and others. Redesign Health has helped fund telehealth apps, health care fintech companies and comprehensive care platforms. In all, the company has raised $315 million in funding.
Founded in 2018, the company is a hub to create health care companies from within. It’s somewhere between an incubator and a venture capital firm, notes a recent Crunchbase News report. A differentiating factor in Redesign Health’s approach is that it makes all the key decisions about any offshoots that spin out of it.
Many of Redesign’s 20 companies use comprehensive care to treat acute conditions. It’s made investments in companies like:
The metabolism and weight-loss coaching and consulting company pairs medication with lifestyle coaching and content that helps consumers improve sleep, exercise and mental health.
The company offers rheumatoid arthritis sufferers a team of rheumatologists and dietitians and provides an app that tracks food intake and flare-ups.
This oncology company provides sleep coaching and sleep-aid supplements.
These types of investments are aimed at making it easier for patients to connect with specialists and for specialists to connect with patients’ primary care physicians.
Redesign Health bears watching as it continues to grow, but its model has a couple of downsides, according to Tech Crunch. Many early-stage startups in this space don’t yet accept insurance, and patients dealing with multiple chronic conditions may become overwhelmed by juggling relationships with many different providers.