- Healthcare startup Transcarent only increased $58 million from investors such as General Catalyst.
- The round valued the two-year-old Transcarent at nearly $500 million, Insider has learned.
- It’s planning to route patients into the care they need without networks and navigators.
- See more stories on Insider’s business page.
Transcarent, a two-year-old healthcare startup led by former Livongo CEO Glen Tullman, only increased $58 million in its Series B round, the business told Insider.
General Catalyst and 7wireVentures led the round, and Merck and Kleiner Perkins also invested, bringing Transcarent’s total funds to $98 million.
The haul appreciated Transcarent at nearly $500 million, a individual with direct knowledge of the issue told Insider. They were not authorized to discuss the evaluation on the record.
The startup works with employers to assist their employees find the type of care they want through a program, whether it is a second view on a surgery or a prescription for the flu. That puts the startup in rivalry with the business’s middlemen, like health programs with networks that Transcarent is bypassing.
Solving problems Livongo couldn’t
With former Livongo leaders at the helm, Transcarent has become a second chapter of their work to alter the way that people get healthcare.
Tullman founded Livongo, a chronic care company initially focused on
, together with investors Hemant Taneja and Lee Shapiro, who are now backing Transcarent. He oversaw its initial public offering in 2019 and merger using Teladoc in 2020, one of the largest deals the industry’s ever seen. Tullman combined Transcarent in March.
Tullman and Taneja won’t be renominated to Teladoc’s board, per an SEC filing, to avoid any conflict of interest between Teladoc and Transcarent.
Insider asked Tullman whether companies he has worked with were frustrated with all the new work.
“I don’t know if people are mad, per se. Maybe they are,” Tullman said. “First of all, large self-insured employers are delighted. They’re the ones who asked me to go and do this.”
Transcarent, Tullman said, solves two issues that Livongo could not.
The team hopes to reduce reliance on health plans and third party”navigators,” while helping companies weed through the hundreds of electronic health businesses, Livongo included, offering disparate pieces of a individual’s overall health requirements.
How Transcarent works
Founded in 2019, Transcarent offers private health guides, doctors, prescriptions, second opinions, medication services, virtual physical therapy, and surgery administration.
It was built in large part around BridgeHealth, founded in 2007, which connects people with better operations for upfront, negotiated costs. The two companies merged in October 2020. Before then, Transcarent was in”stealth,” building out the partnerships and offering, a spokesperson said.