Market shift from point solutions to platforms spurs higher valuation and participation from existing and new investors
Led by General Catalyst & 7wireVentures, the investment will accelerate AI-powered enhancements to Transcarent’s platform, making it easier for people access high-quality, affordable health and care
Transcarent, the One Place for Health and Care, announced a $126 million Series D investment led by General Catalyst and 7wireVentures, joined by new investors Geodesic Capital and Memorial Hermann Health System, with support from previous investors Threshold Ventures, Kinnevik, Ally Bridge Group, Human Capital, Merck Global Health Innovation Fund, Alta Partners, and Leaps by Bayer.
This round brings Transcarent’s total funding raised to approximately $450 million from a diverse group of investors at a valuation of $2.2 billion. The pre-emptive outreach from investors interested in a Series D underscores the confidence in Transcarent’s vision and its relentless commitment to cutting through the confusion and complexity while at the same time removing cost from the healthcare system. The additional investments will be leveraged to accelerate AI capabilities, support commercial growth, and for strategic growth opportunities.
Transcarent’s industry leading health and care platform makes it easy for people to access care and employers to provide and pay for the care. It is the only platform that brings together medical, surgery, pharmacy, and mental health care into one place. The Transcarent platform connects Members to comprehensive care experiences including Everyday Care (which includes Care in 60 Seconds), Pharmacy Care, Surgery Care (from the country’s leading health systems, ambulatory care providers, and Centers of Excellence), Weight Health, and end-to-end Cancer Care.
“Everyone asked, ‘can you make it easier for our people to access high-quality, affordable care?’, and we have. Transcarent is the One Place for Health and Care,” said Glen Tullman, Transcarent Chief Executive Officer. “One platform — your mobile phone — for everything you want and need. And an experience people don’t just like but love. High-quality care and cost reductions with a relentless focus on quality. Just what the doctor ordered.”
“Rising healthcare costs place a significant strain on employers and limit US economic growth and vitality,” said Ken Frazier, Executive Chairman, Transcarent; Chairman, Health Assurance Initiatives, General Catalyst; and former Chairman and Chief Executive Officer, Merck. “I am proud of the progress Transcarent has made to improve the current system for employers and employees alike who are demanding a better, more affordable health and care experience. The outcomes that Transcarent has delivered allow all stakeholders to focus on what matters most: empowering employees with improved access to health and wellness care.”
“Our continued support in Transcarent is driven by their technology, in what we believe is an unmatched integration of software, AI, robust data science, and tailored health guidance. This combination has sparked real change in the delivery of health and care, aligning with our founding mission: to empower millions in navigating the complexities of the healthcare system and achieve better health outcomes,” said Hemant Taneja, CEO and Managing Director, General Catalyst.
“For too long consumers have been left behind by our healthcare system,” said Lee Shapiro, Managing Partner, 7wireVentures. “Transcarent has proven that putting consumers first pays off. By meaningfully engaging consumers in their care, empowering them with the real-time information they need to make the best decisions about their health and care, we see higher quality outcomes and costs go down.”
“Transcarent is bending the healthcare cost curve for consumers and employers, demonstrating that you can deliver great care and a great experience while also decreasing costs,” said John Roos, Founding Partner, Geodesic Capital. “The Transcarent platform is redefining how care is accessed and delivered for millions of Americans. Employers are experiencing ‘point solution fatigue’ and know the status quo is untenable,” said Arvind Ayyala, Partner, Geodesic Capital.
“The future of healthcare innovation is today, and consumer-centric platforms will ultimately prevail,” said Emily Melton, Managing Partner, Threshold Ventures. “Transcarent’s approach to applying responsible AI is reducing the complexity of benefits for employers and consumers alike, and, most importantly, enabling patients to get the right care at the right time at a reasonable price.”
“By building meaningful partnerships with local community health care providers, Transcarent is expanding opportunities for health systems to support national employers through innovative, value-based payment models,“ said Feby Abraham, EVP, Chief Strategy and Innovations Officer at Memorial Hermann Health System. “Transcarent’s platform empowers employer benefits programs, making it easy for employees to seek high quality care from trusted local providers.”
There is urgency associated with the need to address skyrocketing healthcare costs and related consumer affordability challenges. The U.S. spent $4.4 trillion on healthcare in 2022, projected to reach $7.2 trillion in 20311. Health spending is expected to grow an average of 5.4% per year on average between 2022 and 2031, outpacing growth of the Gross Domestic Product (GDP), and accounting for 19.6% of the nation’s overall economy by 20312.
Since the Series C round in January 2022, Transcarent has launched comprehensive Weight Health, Cancer, Behavioral Health and Pharmacy Care Experiences in addition to growing their industry-leading, value-based Surgery Centers of Excellence program. In 2023, Transcarent completed the successful acquisition and integration of the 98point6 AI-powered virtual care platform and care business, which includes the affiliated Transcarent Clinic. Additionally, Transcarent launched the National Independent Provider Ecosystem with 12 leading health systems to deliver a better high-quality consumer experience that is more affordable for self-insured employers. Today, more than 4.3 million people have access to Transcarent through their employer or health plan.
Explore AITechPark for the latest advancements in AI, IOT, Cybersecurity, AITech News, and insightful updates from industry experts!
