Karoo Health, a provider of cardiac value-based care enablement, has successfully closed an oversubscribed Seed round, raising $3.4 million. The round was led by First Trust Capital Partners, LLC. The funding will support Karoo’s upcoming launch and the expansion of its unique value-based cardiac care model.
Karoo Health combines dedicated on-site and virtual care teams with value-based technology to assist cardiology networks, health plans, and health systems in transitioning to and succeeding in outcomes-driven initiatives and contracts. The company aims to improve patient health outcomes while reducing the overall cost of cardiac care.
Ian Koons, CEO and Co-founder of Karoo Health, highlighted the growing momentum of value-based care as a means of simultaneously lowering healthcare costs and enhancing patient outcomes. He expressed Karoo’s mission to help cardiology networks and health systems successfully navigate the transition to value-based care, noting that few entities besides Karoo are launching and providing care for cardiac patients using value-based principles and practices.
Karoo’s approach incorporates technology and wraparound support to augment cardiovascular care, including the deployment of dedicated care teams. The Seed investment will be used to fund the launch of Karoo’s patient services this summer and accelerate the provision of value-based initiatives in the cardiac field.
The company’s initial contractual partnerships cover up to 100 providers of cardiac care across the Southwest United States. Karoo Health is led by a team of experienced healthcare industry professionals, including Chentelle Lane as COO, who has a proven track record in value-based care operations. The leadership team also includes individuals with backgrounds in leading healthcare organizations such as Main Street Health, naviHealth, and Contessa Health.
Jon Phillips, Managing Director and Head of Venture Capital and Private Equity at First Trust Capital Partners, commended Karoo’s comprehensive and innovative approach to cardiology value-based care. He emphasized that Karoo is well-positioned to lead the market in transitioning from volume-based care to outcome-based care, driven by a world-class leadership team.
In addition to First Trust Capital Partners, the Seed funding round attracted investments from new investors GoGlobal and Inflect Health, as well as returning investors Panoramic Ventures and FirstMile Ventures. Several notable industry angel investors also participated in the funding round.