Our Time is Now. Reflections on Transcarent's $126 Million Series D.

By Glen Tullman, Chief Executive Officer, Transcarent

What seems like a long time ago (and it was), we had just finished an IPO and the bankers were asking if we were ready for a secondary offering. Those were the times when literally hundreds of meetings, in person, were required for a successful offering, across the US and often including a trip to Europe. Exhausting. So, I asked our Board. A very wise Board member named Ted said, “when you’re at a cocktail party and they are passing out appetizers, you should take one whether you’re hungry or not because you don’t know when the tray will come around again.” He went on to say, “they're passing the appetizers . . . take the money.” Lucky we did. Not long after, the recession of 1999 hit and having a strong bank account protected our future and fueled acquisitions that built the company.   

Fast forward to 2024. Lots of uncertainty and an unpredictable financial climate, but we were pre-emptively approached to raise more money despite our strong cash position. Our Board, after consideration, said they agreed we should add more to our bank account, but they wanted to make the investment, at least a significant portion. With our Series D, we had strong internal participation and leadership paired with new investors. The best of both worlds.  

Transcarent just closed our $126 million Series D fundraising led by General Catalyst and 7wireVentures, joined by new investors Geodesic Capital and Memorial Hermann Health System, with support from previous investors Threshold Ventures, Kinnevik, Ally Bridge Group, Human Capital, Merck Global Health Innovation Fund, Alta Partners, and Leaps by Bayer. 

The new and existing investors believe that the current situation is unsustainable and existing solutions are not solving the problem. As one investor said, this is a unique situation where experience counts against you because no existing player has solved the 3 Objectives challenge: creating a better experience for people, measurably improving care, and reducing costs.  

Employers are facing skyrocketing costs and will not be able to keep up with the needs of their employees when it comes to their health and care if we don’t invest in new models that target the 3 Objectives. The proliferation of point solutions has created an industry ripe for consolidation and partnership as consumers and employers face a more fragmented and mis-aligned ecosystem that is causing more confusion, complexity, and cost. And the navigators continue to add costs, which are very measurable, but haven’t made a dent in the way people experience their care, the quality of the care (they are typically not involved, referring people right back into the existing systems), and don’t meaningfully impact cost.  

The good news is Transcarent is reinventing health and care delivery, and we aren’t just saying it, we’re making it happen. And we’re willing to partner with anyone with shared objectives that focus on measurable progress against the 3 Objectives: experience, care, and cost. Through integrations with leading technology partners and health systems alike; and with the support of investors who see what we are building, we can continue to invest in our platform and experience, which makes it easy for people to access high-quality, affordable health and care. And get this, we’ll even integrate solutions from our competitors on our platform . . . at no additional cost . . . because we are committed to being the One Place for Health and Care. 

One of the most valuable investments we made since our Series C was our acquisition of 98point6, the leader in healthcare AI. Their team had been keenly focused on revolutionizing virtual primary care long before the pandemic, which undoubtedly sped up the need for advancements in this space. Since this acquisition, Transcarent has committed to building an AI-enabled health and care experience that mirrors the experience consumers receive everywhere else in their lives. We are enabling our Members and the clinicians who serve them with better tools, more accurate information, and a new productivity that will not only reduce costs but give back time to spend with more complex patients (and with their families). We expect to create interactions that feel relevant and personal to them, do so for significantly lower costs than today's “navigators” and keep physicians at the center of all of the care decisions. 

Healthcare is often an industry that gets left behind when it comes to innovation and technology, even though it is the industry that is the most important to each of us, and needs it the most. We believe that now is our time to change this. Now is the time to stop trying to fix a broken system, but to finally successfully apply the lessons from other industries and reinvent the system, putting health consumers back in charge of their care.  

We’re not the only ones who believe the time is now. Our investors are demonstrating their confidence in our approach and ability. To receive backing from our largest existing investors and other leaders in healthcare, along with technology-focused leaders like Geodesic Capital, who has funded tech giants like Airbnb, Snapchat, and Uber, validates the work we are doing and the clear path ahead.  

Our time is now . . . this is something we believe, and we are grateful for the validation and support of our Series D investors who have enabled us to keep moving forward now and deliver on our vision and mission.