Redesign Health, an NYC-based company that builds healthcare startups, has raised $250 million in fresh funding, as first reported by the Wall Street Journal on Thursday. Now, the company is hiring, and says it is well on its way to launching 50 more health and wellness startups over the next five years.
A company spokesperson told Built In via email that the investment was provided by Declaration Partners, a firm backed by the family office of billionaire businessman David M. Rubenstein, as well as other unnamed family offices and individuals. The money will be used to double the company’s headcount in the next year.
Founded in 2018, Redesign Health conducts research and brings together entrepreneurs, experts and investors with the stated goal of creating companies that transform the healthcare industry. This approach attracts founders who understand the “scale, complexity and urgency” of the space, and leads to “better solutions and health outcomes for patients,” according to a press briefing provided to Built In.
To date, Redesign Health has created 15 businesses, all of which raised additional capital from outside investors within the first year of being seeded. Its companies are involved in areas like COVID-19 testing, metabolic health, last-mile care delivery, elder care and cancer patient support. Some familiar names in its portfolio include Calibrate, which launched a new year-long online weight loss program in June; and sleep startup Proper, which raised $9.5 million from Snoop Dogg’s VC firm Casa Verde over the summer.
Venture capital in the healthcare industry has been particularly active in the last year amid the pandemic, with entrepreneurs the world over scrambling to come up with the next big thing that makes healthcare more efficient and accessible. This is especially true in NYC — healthtech startups here raised more funding in 2020 than at any time since at least 2016, with companies like Ro and Oscar Health raking in hundreds of millions of dollars in VC funding.
Going forward, Redesign Health plans to take a bite out of this fast-growing market.
“The healthcare system is evolving faster than we’ve ever seen. The challenges presented by COVID-19 brought many issues to the forefront, creating an even greater need for transparency and innovation,” the company said in its press briefing. “We expect to see accelerating adoption of digital health broadly and increased demands for change among payers, providers, patients and regulators.”
