More than 60 healthcare startups have been built at Redesign Health since it was founded in 2018. This week, the company closed a $175 million investment for a new fund to fuel the creation of even more startups.
Some venture firms that participated in the new funding round include Declaration Partners, Euclidean Capital and True North Advisors.
New York City-based Redesign is a company that creates healthcare startups — and it’s different from other venture studios, said Neil Patel, who serves as Redesign’s head of ventures.
“We help founders navigate healthcare’s unique complexities through our proven company-building approach. We partner with founders throughout their journey, providing support in three critical areas,” he declared.
The first area is identifying and validating business opportunities. Redesign provides support during this process through its research lab, as well of its network of experts with deep industry knowledge, Patel explained.
Redesign has built relationships with “hundreds of healthcare organizations and industry leaders,” spanning health systems, other provider organizations, payers, and health technology companies, he noted.
“This network helps our founders navigate healthcare’s complexities and accelerate commercial traction,” Patel remarked.
He also pointed out that Redesign’s established relationships with large healthcare organizations allows the firm to provide founders with go-to-market strategies that can help them accelerate business growth.
The final area in which Redesign provides support is operational resources. The company is committed to helping founders fine-tune their startup’s operations throughout any stage of their growth, Patel said.
Redesign’s new fund will allow the company to launch “dozens” of new startups over the next several years, he noted. These startups will focus on areas where Redesign sees “the greatest opportunity for innovation and impact,” such as healthcare labor solutions, value-based care, and data interoperability, Patel explained.
He also highlighted that Redesign’s existing portfolio of startups has touched the lives of more than 15 million patients and generated more than $1 billion in revenue.
Some of Redesign’s startups have already been acquired by larger companies, Patel stated.
For example, hearing aid company Jabra Enhance was acquired by GN Hearing in 2021, and Vault Workforce Screening, which helps healthcare organizations with the background screening process, was acquired by Sterling earlier this year.
Photo: Topp_Yimgrimm, Getty Images
