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Sunday, July 14, 2024

Redesign Health raises $65M to create dozens of startups in 5 years

Redesign Health, a firm that builds new businesses in  the healthcare sector, has secured $65 million in funding. The company seeks to create dozens of startups in the next five years.

Redesign Health, a firm that launches other healthcare startups, has raised $65 million in new funding as it pursues its ambition of launching dozens of startups over the next five years.

According to a source familiar with the funding, the round raises the company’s post-money valuation to $1.7 billion.

Redesign, founded in 2018 by CEO Brett Shaheen, investigates, assembles, brands, and launches healthcare businesses by leveraging its network of entrepreneurs, healthcare sector operators, business analysts, and investors.

Though the organization has been compared to a venture capital fund or accelerator, Redesign distinguishes itself by not fitting inside a single box.

Redesign investigates healthcare sectors and identifies problems or areas that could benefit from innovation. It then creates a thesis and starts product development. It then establishes a startup and assembles a leadership team.

The latest round of money will help Redesign’s core operations and platform rather than the running firms it has formed.

Since its establishment, Redesign has created more than 40 firms, including Ever/body, which focuses on aesthetic dermatology, Jasper, a cancer-care company, and Calibrate, a metabolic health company.

“We have a long way to go,” Shaheen adds, “but we have established a platform and a process that we believe fundamentally transforms the risk equation for innovation.”

According to Shaheen, Redesign intends to establish more than 25 businesses this year alone.

“We’re continuously reinforced in our opinion that healthcare demands scaled innovation, and is confronting an urgent need for innovation that our model can play a role in solving,” Shaheen adds.

Though venture capital spending in health tech peaked in 2021, broader macroeconomic worries have slowed deals. That  makes Redesign’s Series C all the more remarkable.

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