Summary List PlacementTranscarent, a two-year-old health care start-up led by previous Livongo CEO Glen Tullman, just raised $58 million in its Series B round, the company told Insider.
General Catalyst and 7wireVentures led the round, and Merck and Kleiner Perkins also invested, bringing Transcarent’s total funds to $90 million..
The haul valued Transcarent at nearly $500 million, a person with direct understanding of the matter told Insider. They were not authorized to go over the evaluation on the record.
The startup deals with companies to help their workers find the kind of care they require through an app, whether it’s a consultation on a surgical treatment or a prescription for the flu. That puts the start-up in competition with the market’s middlemen, like health plans with networks that Transcarent is bypassing.
Solving problems Livongo could not.
With previous Livongo leaders at the helm, Transcarent has become a second chapter of their work to alter the method people get healthcare.
Tullman established Livongo, a persistent care company at first focused on diabetes, with financiers Hemant Taneja and Lee Shapiro, who are now backing Transcarent. He supervised its going public in 2019 and merger with Teladoc in 2020, among the biggest offers the market’s ever seen. Tullman signed up with Transcarent in March..
Tullman and Taneja won’t be renominated to Teladoc’s board, per an SEC filing, to prevent any dispute of interest in between Teladoc and Transcarent.
Expert asked Tullman whether business he’s dealt with were frustrated with the brand-new effort.
” I do not understand if people seethe, per se. Maybe they are,” Tullman said. “To start with, big self-insured employers are pleased. They’re the ones who asked me to go and do this.”.
Transcarent, Tullman stated, fixes 2 problems that Livongo could not.
The team hopes to minimize dependence on health insurance and third-party “navigators,” while helping employers weed through the numerous digital health companies, Livongo included, providing diverse pieces of an individual’s total health care needs..
How Transcarent works.
Founded in 2019, Transcarent now uses personal health guides, doctors, prescriptions, consultations, medication services, virtual physical therapy, and surgery management.
It was built in large part around BridgeHealth, established in 2007, which connects people with better surgeries for upfront, worked out costs. The two companies merged in October2020 Before then, Transcarent was in “stealth,” constructing out the offering and collaborations, a spokesperson said.
Transcarent agreements with leading knee cosmetic surgeons, as one example, and can recommend experts locally. If you get sick, you can text with a physician through the app, and they can write prescriptions..
There are no copays in Transcarent’s model, and it doesn’t charge employers in advance charges, either. Instead it’s paid, after a designated time period, based on the expense savings it delivers, according to targets worked out with clients in advance..
Often, it deals with other sort of companies to take care of clients through collaborations..
For example, Transcarent has partnered with telehealth startup CirrusMD, enabling Transcarent members to access their doctors within a minute, while they’re still in Transcarent’s app, so there’s not another set of logins and details, like copays, to figure out..
7Wire Ventures, where Tullman is a managing partner, invested in CirrusMD around the exact same time the collaboration formed.
Transcarent will likely utilize the partnership model across a range of care types.
” So it’s all in one place,” Tullman said.Join the conversation about this story” NOW WATCH: Why some Coca-Cola bottles have a yellow cap