The circle was led by General catalyst. Hemant Taneja, CEO and Managing Director of General Catalyst, is personally leading the round and will join Redesign’s board. Other investors – including CVS Health Ventures, UPMC Enterprises, Eden Global Partners, Euclidean capital, Samsung Next, TriplePoint Capital and Declaration Partners — is also involved in financing.
Redesign launched in 2018 with the goal of driving “a new model of healthcare innovation” by bringing together industry leaders, visionary founders and investors, according to Samantha Lynch, the company’s head of strategy and finance. His company creation model involves using cross-functional teams in product development, business strategy and marketing to develop companies with unmet needs identified by market research.
The company is different from venture capital funds, which often do not have a specific focus on healthcare and invest in companies in a wide range of industries. And even VCs with specialized healthcare arms typically use “a very customized process to build a small number of companies using a small team,” Lynch said. With more than 300 employees, Lynch said Redesign has been focused on innovating at scale since it spun off more than 40 companies after four years.
Lynch also pointed out that the company is driving health innovation through “basic company creation” — rather than waiting to invest until the company has done the basic work, as venture funds do.
Redesign also differs from incubator programs because they often involve only a narrow portion or stage of a startup. Instead, Redesign takes a holistic approach, Lynch said.
This approach involves multiple teams. For example, Redesign’s business development teams conduct market research and generate new business ideas, the product team helps create initial products for startups, and the marketing team builds startup brands and develops go-to-market plans. And from day one, the company’s VCs have provided operational guidance, helped recruit the founding team and served as board members as the business grew, Lynch said.
The company-building process always begins with “a carefully designed team of technology, healthcare and finance experts to pressure-test ideas and build the foundations for a startup,” Lynch explained. Once the concept is developed, Redesign brings in partners—such as seed investors, academic experts, or health system leaders—to help bring startups to market.
When building companies, Redesign prioritizes removing costs from the healthcare system, improving the quality of care and creating easier access for patients.
Examples of these companies include a cancer treatment technology company hi jasperpersonalized autism care provider Spring child developmentand digital weight loss startup Calibration. In all of these cases, Redesign created the startup because it wanted to disrupt the current state of care, which included “a combination of too few clinicians and too few sophisticated tools leading to inappropriate care,” Lynch said.
More recently, Redesign is building more companies to help providers and payers move to value-based care. Two of these startups include a home health company MedArrive and Duetsa startup that connects seniors with a home care manager.
In addition to creating these companies, Redesign also shares benefits with them.
“We are shareholders from day one in every company created at Redesign Health, and we are focused on creating a deep partnership with the founders, centered on a strong alignment of incentives and a shared vision for impact,” said Lynch.
The Series C funding round brings the total raised by Redesign to date to $165 million. The round also boosts the company’s valuation to $1.7 billion, according to reports Fast company — Lynch declined to confirm the figure.
Photo: Topp_Yimgrimm, Getty Images