Transcarent, a healthcare startup founded by Glen Tullman, is in the process of raising $125 million in Series D funding, with General Catalyst leading the round. This latest funding effort values the company at $2.1 billion. However, due to Transcarent's substantial losses, the deal includes protective terms for investors, such as a liquidation preference clause. Despite the challenges in fundraising for growth-stage healthcare startups, Transcarent is pushing forward with its efforts to secure this round.
Previously, Transcarent raised a total of $298 million, with a significant portion coming from a $200 million Series C round in January 2022. However, the company faced a tough financial year in 2023, with reported losses amounting to $80 million against $50 million in revenue. Despite these financial setbacks, Transcarent remains focused on expanding its offerings and operations.
Glen Tullman founded Transcarent in 2020, aiming to introduce innovative payment models to employers in the healthcare sector. With contracts in place with over 300 employers and health plans, the startup offers care navigation, telehealth, and bundled provider services. In addition to General Catalyst, Transcarent has garnered support from various investors and health systems. The company recently launched a weight management program and acquired a virtual care platform to diversify its service offerings and strengthen its position in the healthcare market.
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