Deal Dive: Why does General Catalyst want to buy a healthcare system?

Must read

3,248 ETH Stolen In Axie Infinity Co-Founder Hack – Here Are The Details

On Thursday night, the Axie Infinity co-founder suffered a hack that included a large amount of ETH being withdrawn from the wallet and...

Coinbase CEO Dispels Rumours: No Government Ban On Nigerians From The Crypto Exchange

Coinbase, a prominent crypto exchange headquartered in the United States, has debunked allegations that it was instructed by the Nigerian government to prevent...

Dogecoin Falls Out Of Top 10 Crypto, Are Meme Coins No Longer A Threat?

Sign Up for Our Newsletter! For updates and exclusive offers...

US Bitcoin Miners Sue Biden Administration In Battle Over Regulation

On Thursday, February 22, Bitcoin miner Riot Platforms, along with industry groups Texas Blockchain Council (TBC) and the Chamber of Digital Commerce, initiated...

Venture capital and healthcare startups have had a tumultuous relationship over the past few years. Before the pandemic, the majority of venture investment in health tech and healthcare startups came from VCs focused on the sector. That changed in 2020, when seemingly every flavor of VC flooded into the market.

Much of this newfound interest was seemingly driven by investors chasing pandemic tailwinds and reacting to FOMO as opposed to a desire to build a lasting healthcare portfolio. In fact, many VCs retreated from the sector shortly after the world started returning to normal.

Not everyone did, of course; some decided to double down. General Catalyst was one of those, and that stance has resulted in an interesting development this week.

At the HLTH conference in Las Vegas last weekend, General Catalyst said it was launching a new initiative, Health Assurance Transformation Corporation (HATCo). The new project will work with the firm’s portfolio companies and existing partnerships with healthcare institutions to advance the concept of health assurance, which aims to get consumers to interact with healthcare provided on a proactive basis.

General Catalyst declined to comment on the HATCo effort beyond the blog post it issued.

Now, a lot of VC funds set up such partnerships with large entities for the sake of their portcos — often replete with lofty goals and mission statements — but this project is different. Why? Because a key plank of the HATCo initiative is that General Catalyst intends to buy an entire healthcare system.

There’s a lot to unpack here

Why would a VC firm want to own its own healthcare system? Why would it want that stress or such a costly asset when it could just continue with its healthcare partnerships?

It appears that General Catalyst has been moving in this direction for years — and I’m not just saying that because I met a VC this week who seemed generally confused that people were so surprised by this news.

The venture firm had built a sizable healthcare startup portfolio well before the HATCo announcement. In fact, it has been the most active VC investor in healthcare since the beginning of 2020, according to PitchBook. The firm has raised more than $1 billion specifically for health tech startups to date. It also launched multiple SPACs in 2020 on its hunt for companies that could become health assurance platforms.

More articles

Latest article

3,248 ETH Stolen In Axie Infinity Co-Founder Hack – Here Are The Details

On Thursday night, the Axie Infinity co-founder suffered a hack that included a large amount of ETH being withdrawn from the wallet and...

Coinbase CEO Dispels Rumours: No Government Ban On Nigerians From The Crypto Exchange

Coinbase, a prominent crypto exchange headquartered in the United States, has debunked allegations that it was instructed by the Nigerian government to prevent...

Dogecoin Falls Out Of Top 10 Crypto, Are Meme Coins No Longer A Threat?

Sign Up for Our Newsletter! For updates and exclusive offers...

US Bitcoin Miners Sue Biden Administration In Battle Over Regulation

On Thursday, February 22, Bitcoin miner Riot Platforms, along with industry groups Texas Blockchain Council (TBC) and the Chamber of Digital Commerce, initiated...

Bitcoin Sellers Have Returned On Coinbase, Price Decline To Continue?

Data shows the Bitcoin Coinbase Premium Index has turned negative once more, a sign that could prove to be bearish for the asset’s...