Carrum Health, the first comprehensive bundled payment platform for employers, received $6.5 million in seed funding led by Wildcat Venture Partners, a venture capital firm committed to enabling early-stage startups to build high-growth business. The funding also includes contributions from venture capital firms SJF Ventures and SpringRock Ventures. Carrum Health will use the funding to improve and rapidly expand their platform to meet the growing demands of their customer base by offering additional acute care bundles in orthopedic, spine and cardiac and adding key service lines such as bariatrics and maternity.
Carrum Health connects self-insured employers to top-quality regional healthcare providers through standard bundled payment arrangements. Their goal is to radically improve the healthcare experience and outcomes of patients, while reducing cost burden for both employers and their employees. They also aim to help top-quality provider systems pursuing value-based care initiatives establish themselves as Centers of Excellence and gain market share.
“As healthcare continues to push towards value-based care, employers are paying close attention to their healthcare benefits to meet the needs of their employees at a reasonable price,” said Sachin Jain, CEO of Carrum Health. “We’re excited about this funding because it positions us to meet the demands of current and future customers by expanding our bundled payment offerings. This capital will also go towards further enhancing our technology and operations platform while improving our analytical insight capabilities.”
2016 was a year of growth for Carrum Health. Starting with one employer in early 2016 to currently serving more than 400 employer groups on the West Coast of the U.S. Beyond acquiring more users, the patients using the innovative platform provided positive feedback on the highly differentiated experience it offered and incentivized Carrum Health to continue to expand their offerings.
“Through a unique combination of business model innovation, technology and big-data analytics, Carrum Health is creating a new healthcare model that delivers better healthcare outcomes and lowers cost,” said Phyllis Whiteley, Venture Partner at Wildcat Venture Partners. “There are many inefficiencies in healthcare’s fee-for-service payment model, but most can agree that quality care at an affordable cost is the goal for value-based care. We have been looking for opportunities that provide a fundamental change to our complex and costly healthcare system, and Carrum Health is uniquely positioned to drive systemic change through bundled payments.”
About Carrum Health
Carrum Health was founded in 2014 with a mission to “bring common sense to healthcare” through a model that is mutually beneficial for providers, employers and their employees. Carrum achieves this by connecting thoughtful and progressive self-insured employers with regional Center of Excellence providers under bundled payment arrangements. Doing so aligns provider incentives with quality performance, resulting in dramatic improvement in both the patient experience and care outcomes. In addition, both employers and their employees achieve significant cost savings while top doctors and hospitals recognize increased volume and new revenue streams. For more information, visit carrumhealth.com.
About Wildcat Venture Partners
Wildcat Venture Partners is a Silicon Valley-based venture capital firm that invests in early-stage technology companies leveraging key technologies such as: artificial intelligence (AI), augmented reality (AR)/virtual reality (VR), highly scalable data infrastructure, machine learning (ML), and the internet of things (IoT). We are specifically interested in teams that are applying these technologies in the following markets: consumer, digital health, edtech, enterprise, fintech, marketing technology, and marketplaces. The Wildcat team brings decades of entrepreneurial experience, venture experience, and deep domain expertise to effectively navigate early-stage companies through the Traction Gap. For more information, visit wildcat.vc.