Redesign Health, a health-focused venture firm and startup studio based in New York, is currently engaged in a fundraising effort to secure significant funding. The company aims to raise $250 million, which would bring its total funding to $715 million. This follows previous successful fundraising efforts, including a $250 million raise in March 2021 and a $65 million Series C funding round in September 2022.
The details of how the new $250 million raise would be utilized are still unclear as the fundraising efforts are ongoing, and terms may change. Since its establishment in 2018, Redesign Health has developed and launched over 65 healthtech companies. Its unique model combines aspects of a venture capital firm with a startup incubator, resulting in successful ventures such as home health provider MedArrive and weight-loss startup Calibrate.
Investors in Redesign Health include General Catalyst, CVS Health Ventures, and UPMC Enterprises. However, the fundraising landscape for VC firms has evolved significantly since Redesign’s previous fundraising efforts. Some investors have experienced challenges meeting targets, leading to workforce reductions and a pause in new investments. Despite these challenges, Redesign Health remains committed to supporting its existing portfolio companies moving forward.
Within Redesign’s portfolio, some well-funded companies have faced difficulties in securing additional funding. Calibrate, a notable company under Redesign, encountered issues last year with cash burn and customer complaints related to access to weight-loss drugs. Despite these challenges, the firm remains focused on navigating the evolving fundraising landscape and continuing to support its portfolio companies.
Redesign Health’s post-money valuation reached $1.7 billion following a series of funding rounds and workforce adjustments. While recent challenges have presented obstacles for the company’s growth plans