Livongo veteran Glen Tullman’s latest venture, healthcare startup Trascarent, is raising a Series D round, Business Insider has learned.
Transcarent, which connects employers with a suite of medical services, is targeting a $125 million raise led by General Catalyst, according to two people with knowledge of the efforts.
The sources said the round values Transcarent at about $2.1 billion.
It’s been a difficult fundraising environment for growth-stage healthcare startups — and that’s reflected in Transcarent’s latest fundraising push. The two people said the deal includes liquidation preference, which is meant to protect investors in the face of risk, including a stipulation that investors will get paid back 2.5 times the amount they put in the event of an exit or IPO.
The round hasn’t yet closed and terms of the deal could change. In a statement to BI, Transcarent vice president of communications and government affairs Leslie Krigstein said, “We don’t comment on rumors or speculation, and caution others on the veracity of unverified information.”
Transcarent has raised $298 million to date, last grabbing $200 million in a January 2022 Series C round that boosted its valuation to $1.6 billion.
But the startup has been burning through cash, posting $80 million in losses in 2023, two sources said. Transcarent reported $50 million in revenue over the same period, according to multiple sources.
Tullman founded diabetes company Livongo back in 2016. Livongo, which was also backed by General Catalyst, went public in 2019; the following year, it sold to telehealth player Teladoc for a whopping $13.9 billion, marking what was at the time the biggest digital health deal ever.
Tullman founded Transcarent in 2020 to contract with employers with updated payment models, like charging employers pre-negotiated rates instead of increasing costs when things go wrong, a twist on the typical health plan model.
The startup has contracts with more than 300 employers and health plans to provide its care navigation, telehealth, and bundled provider services.
Tullman is also a cofounder at VC firm 7wireVentures, which has invested in Transcarent. In addition to General Catalyst, the startup’s other investors include Kinnevik, Human Capital, Ally Bridge Group, Alta Partners, Merck Global Health Innovation Fund, Jove Equity Partners, Threshold Ventures, GreatPoint Ventures, and the health systems New York’s Northwell Health, Intermountain Healthcare, and Rush University Medical Center.
In January, Transcarent launched a program for weight management care, which provides access to services like surgeries and GLP-1 prescriptions for weight loss in partnership with healthcare startups 9amhealth and Soda Health. Transcarent also acquired 98point6’s virtual care platform in March 2023 to offer on-demand telehealth care.
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