CVS Health Ventures said it backed a startup that helps launch other startups because it believes the company can have a "multiplier" effect on digital health.
The venture capital arm of CVS Health participated in a $65 million funding round in September for Redesign Health, which provides research, technology and branding for aspiring digital health companies. UPMC Enterprises and General Catalyst also took part.
"Redesign for us was a bit of a nontraditional investment, meaning it's a launching pad for other startups. It has this multiplier effect in the digital health ecosystem," said Andrea Messina, executive director and partner at CVS Health Ventures, in a July 12 CVS blog post. "They take a lot of the most difficult elements of starting a new company out of the equation for [prospective] founders. We're really excited and enthusiastic for all they've been able to build."
Redesign Health has helped 50 digital health startups get off the ground in the past five years, according to the article. CVS Health Ventures, meanwhile, has invested in 18 companies since it began doing business in April 2021.