Why we invested in Redesign Health, powering healthcare innovation
The vast majority of startups fail due to some combination of the wrong idea, the wrong team, and/or poor execution. This is especially true in the healthcare industry. Among the many landmines are complexity, opaque value chains, regulations, conservatism, network intensity, and the fact that a successful product-market-fit requires satisfying multiple stakeholders.
Redesign Health is capitalizing on this lack of innovation in the healthcare industry. The Redesign Health model combines the best elements of an incubator, an accelerator, and a venture capital firm. The result is a unique platform for creating new ideas for business opportunities, incubating the most viable ideas, finding the right talent needed to scale the new companies, and subsequently providing support to these healthcare companies post-launch.
We invested in Redesign Health because it’s enabling healthcare innovation in a scalable way by unbundling innovation from the operational requirements of starting a new company. Samsung Next joined a $65 million Series C round led by General Catalyst, with participation from CVS Health Ventures, UPMC Enterprises, Declaration Partners, Eden Global Partners, Euclidean Capital, and TriplePoint Capital.
Redesign Health handles the zero to one for startups, often going from ideation to incubation in three to nine months. The company, which launched in 2018, has built a platform to launch and nurture new healthcare companies that capitalize on recent market trends that have led to the adoption of new treatment modalities, a shift from fee-for-service to value-based care, a focus on wellness, and a tech-savvy senior population. To date, companies founded at Redesign Health consist of more scalable and digital-first companies. The 40-plus startups built at Redesign range from Kins, a seed stage company that offers in-home physical therapy, to Ever/Body, a Series C cosmetic dermatology company.
We are particularly excited about Redesign Health’s ability to open up the total addressable market of entrepreneurship to many who would not have been founders otherwise due to the complexity of the space. The key moving forward will be for Redesign Health to recruit top-tier talent needed to help these young companies grow. Looking ahead, we think Redesign Health is poised to become a major catalyst for supporting innovation in the healthcare sector.
Caroline O'Connor is an Investor at Samsung Next. Samsung Next's investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited to, Samsung Electronics.