Summary List PlacementTranscarent, a two-year-old healthcare startup led by former 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 almost $500 million, a person with direct knowledge of the matter told Insider. They were not authorized to discuss the valuation on the record.
The startup works with employers to help their employees find the kind of care they need through an app, whether it’s a second opinion on a surgery or a prescription for the flu. That puts the startup in competition with the industry’s middlemen, like health plans 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 change the way people get healthcare.
Tullman founded Livongo, a chronic care company initially focused on diabetes, with investors Hemant Taneja and Lee Shapiro, who are now backing Transcarent. He oversaw its initial public offering in 2019 and merger with Teladoc in 2020, one of the biggest deals the industry’s ever seen. Tullman joined 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’s worked with were frustrated with the new effort.
“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 problems that Livongo couldn’t.
The team hopes to reduce reliance on health plans and third-party “navigators,” while helping employers weed through the hundreds of digital health companies, Livongo included, offering disparate pieces of a person’s overall healthcare needs.
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How Transcarent works
Founded in 2019, Transcarent now offers personal health guides, physicians, prescriptions, second opinions, medication services, virtual physical therapy, and surgery management.
It was built in large part around BridgeHealth, founded in 2007, which connects people with better surgeries for upfront, negotiated costs. The two companies merged in October 2020. Before then, Transcarent was in “stealth,” building out the offering and partnerships, a spokesperson said.
Transcarent contracts with top knee surgeons, as one example, and can recommend specialists locally. If you get sick, you can text with a doctor through the app, and they can write prescriptions.
There are no copays in Transcarent’s model, and it doesn’t charge employers upfront fees, either. Instead it’s paid, after a designated period of time, based on the cost savings it delivers, according to targets worked out with clients beforehand.
Sometimes, it works with other kinds of companies to care for patients through partnerships.
For instance, Transcarent has partnered with telehealth startup CirrusMD, allowing Transcarent members to access their physicians 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 same time the partnership formed.
Transcarent will likely use the partnership model across a variety 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
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