Skip to main content
Sister Publication Links
  • ModernHealthcare.com
Subscribe
  • My Account
  • Login
  • Register
  • Consumer Centric
  • Provider/Payer Centric
  • Funding/M&A
  • Policy
  • Data
  • Opinion
  • MORE+
    • Webinars
    • Advertise
MENU
Breadcrumb
  1. Home
  2. Finance
January 12, 2022 05:12 PM

How Transcarent achieved unicorn status in record time

Nona Tepper
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    iStock-1129146997_i.jpg
    iStock

    On December 15, Transcarent CEO Glen Tullman received a term sheet from a venture capitalist offering to invest in his digital health and benefits management startup. Less than a month later, Tullman’s company pocketed another $200 million, making the 11-month-old startup reportedly the fastest digital health company to ever achieve unicorn status. Tullman said he hadn’t planned to pursue additional investments until mid-2022. 

    “We were able to raise just over $200 million in record time and I couldn’t be happier about some of the new partners and existing partners we added on,” Tullman said during the annual J.P. Morgan Healthcare Conference on Wednesday. 

    Kinnevik and Human Capital led Transcarent’s Series C round, with participation from Ally Bridge Group and previous investors General Catalyst, GreatPoint Ventures, Threshold Ventures and Merck Global Health Innovation Fund. 

    New health system investors Northwell Health, Intermountain Healthcare and the Rush University Medical Center also participated and reflect the new, growing market for Transcarent, which is currently focused on providing care navigation services for 80 self-insured employers that represent 1 million covered lives. With the Series C cash, Transcarent aims to add government, labor unions and third-party administrators as customers in 2022, as well as expand its service breadth to cover new ground, like in-home care . 

    “We’re very interested in health systems to not only partner in providing care but as customers,” Tullman said. He added that Transcarent already counts insurers as customers and will likely have announcements about who these clients are “soon, but, by and large, we’re staying hunkered down and focused on our bread and butter, which is self-insured employers.” 

    Unlike most digital health companies that charge businesses a subscription fee, Transcarent offers employers three payment models–a per member per month subscription fee, a fee-for-service model or full-risk approach, where the startup pays providers upfront and partners with employers without charging them a monthly fee. 

    Tullman credited Transcarent’s fundraising speed with the company's flexible payment structure and his previous experience as founder of Livongo. In August 2020, Livongo and Teladoc Health announced an $18.5 billion merger, a record deal in digital health. 

    “What we’ve done starts with building true, trusted partnerships with members, with employers and with providers,” Tullman said. “Providers have been left out in many cases and we’re not leaving them out anymore.”

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it online.

    Recommended for You
    Alyssa Jaffee
    Five Questions: 7wireVentures’ Alyssa Jaffee
    money2_i_i.png
    GeneDx to raise $150M in public and direct stock offerings
    Sponsored Content
    Get Newsletters

    Newsletters for providers, payers, investors and innovators across the digital health ecosystem. Sign up to get breaking digital health news including digital health deals, M&A, finance, IPOs. as they happen, right to your inbox.

    Buy Q3 Report Today
    Quarterly Report Cover Image

    The Digital Health Funding and M&A Q3 report delivers the most comprehensive insight and data around the financial health of the sector.

    Purchase Today
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Digital Health Business & Technology delivers news, data, insights and analysis covering the entire digital healthcare ecosystem.

    Logo
    Contact Us

    (877) 812-1581

    Email us

     

    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    Resources
    • About Us
    • Contact Us
    • Staff
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Digital Health Business & Technology
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Consumer Centric
    • Provider/Payer Centric
    • Funding/M&A
    • Policy
    • Data
    • Opinion
    • MORE+
      • Webinars
      • Advertise