Redesign Health is looking for a big infusion of cash in its latest fundraising push, Business Insider has learned.
The health-focused venture firm and startup studio is targeting a $250 million raise, according to three people with knowledge of the efforts.
Redesign previously grabbed $250 million for itself and its portfolio companies, including $100 million in Series B funding, in March 2021. Most recently, the firm landed $65 million in Series C funding for itself in September 2022.
It’s unclear how this new $250 million raise would be allocated. The efforts are ongoing, and terms of the raise could change. Redesign declined to comment for this story.
Based in New York, Redesign Health has built and launched more than 65 healthtech companies since its inception in 2018, with a model that’s half VC firm, half startup incubator. It’s backed and scaled startups like home health provider MedArrive and weight-loss startup Calibrate.
Redesign’s own investors include General Catalyst, CVS Health Ventures, and UPMC Enterprises, the venture arm of health system UPMC.
The fundraising environment for VC firms has changed significantly since Redesign last pulled in $250 million, however. Some investors have struggled in the past year to meet fundraising targets, with many cutting employees or halting new bets.
Some of Redesign’s best-capitalized portfolio companies have struggled in the funding downturn. Calibrate, one of the biggest names under Redesign, was burning through cash last year and faced a mountain of patient complaints as it struggled to get customers access to weight-loss drugs like Ozempic, a previous Business Insider investigation found. Its CEO and founder departed the company last year after Calibrate cut a deal to be acquired by private-equity firm Madryn Asset Management.
In February, Redesign Health cut 77 employees and said it would slow down its pace of creating new startups.
The company said in an email to employees about the February layoffs that it planned to focus on supporting its existing portfolio companies in 2024, according to Fierce Healthcare.
The firm previously laid off 67 employees, or 20% of its workforce, in October 2022, a month after its $65 million Series C raise, per Fast Company.
That Series C raise bumped Redesign’s post-money valuation to $1.7 billion, Fast Company reported.
