Karoo Health Raises $3.4 Million in Oversubscribed Seed Round

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Jun 07, 2023, 11:51 ET

Funding Supports the Launch of the Only Value-based Cardiac Care Enablement Model in Partnership with up to 100 Cardiology Providers

ALBUQUERQUE, N.M., June 7, 2023 /PRNewswire/ -- Karoo Health, the only provider of cardiac value-based care enablement, announced today the closing of an oversubscribed Seed round of $3.4 million, with First Trust Capital Partners, LLC as lead investor. The investment supports Karoo's launch this summer and the expansion of its distinctive, value-based cardiac care model.

Karoo combines dedicated on-site and virtual care teams with value-based technology to help cardiology networks, health plans, and health systems transition to and succeed in outcomes-driven initiatives and contracts, efforts that are sorely needed for improving patient health and lowering overall cost of care in cardiology.

"Value-based care is rapidly gaining momentum as a way to simultaneously lower costs of care and significantly improve patient outcomes," said Ian Koons, CEO and Co-founder of Karoo Health. "Our mission is to help cardiology networks, health plans, and health systems transition to, and succeed in, value-based care. While recent months have seen a significant uptick in press around VBC in cardiovascular disease, the leading cause of death in the United States, few, if any, entities besides Karoo are launching and caring for cardiac patients using value-based principles and practices."

"Our approach augments cardiovascular care through the use of technology and the integration of wraparound support for the patient, including the deployment of dedicated care teams," said Ben Selzer, Karoo CFO and Co-founder. "The Seed investment will fund our patient go-live this summer and help accelerate the provision of value-based initiatives that are so desperately needed in the cardiac vertical."

Karoo's initial contractual partnerships represent up to 100 providers of cardiac care throughout the Southwest United States. The company is led by a team of accomplished healthcare industry veterans, including Chentelle Lane as COO. A proven leader in value-based care operations, Lane was most recently COO of Care Services at Cityblock Health and has also held executive-level positions at Somatus and naviHealth. Other members of the Karoo leadership team include former executives from Main Street Health, naviHealth, and Contessa Health.

"Karoo's innovative and comprehensive approach to cardiology value-based care has positioned the company to lead the market from volume-based care to outcome-based care," said Jon Phillips, Managing Director and Head of Venture Capital and Private Equity at First Trust Capital Partners. "Guided by a world-class leadership team, Karoo offers the solutions to be a pioneer in a major paradigm shift for cardiac healthcare delivery networks."

Additional investors in Karoo's Seed funding include new investors GoGlobal and Inflect Health, returning investors Panoramic Ventures and FirstMile Ventures, and a group of notable industry angel investors.

About Karoo Health
Using a proprietary combination of dedicated care teams and value-based technology, Karoo empowers cardiology networks, health plans, and health systems' transition to, and success in, the outcomes-driven initiatives and contracts that are so desperately needed in the cardiac vertical. For more information, visit the company at www.karoohealth.com or connect with them on LinkedIn.

SOURCE Karoo Health