Michelle Carnahan is on an exciting new journey. After leading the healthcare startup Thirty Madison and spending years at Eli Lilly, she’s now starting her own venture called Arbiter. What makes this launch unique? No venture capital backing—just smart investment from family offices.
Arbiter recently secured $52 million in seed funding, giving it a $400 million valuation. Instead of relying on traditional VCs, Carnahan attracted private investment firms like TriEdge Investments and MFO Ventures. These firms are not just looking for a financial return; they’re also bringing healthcare expertise to the table.
Arbiter aims to streamline healthcare administration by connecting patient data and automating tasks like scheduling and referrals. In just six months, the tech is already in use with over 1,000 clinicians, thanks to the support from these family offices.
Historically, many startups have relied heavily on VCs, especially during the boom periods. However, Carnahan’s decision reflects a shift in the startup landscape. A survey by the National Venture Capital Association found that only 50% of startups are now seeking VC funding, compared to 75% a few years ago. Many companies are exploring alternative funding routes due to challenges in the VC landscape.
During her time at Thirty Madison, Carnahan saw the rapid rise and fall of funding in the healthcare sector. This experience influenced her choice to pursue investments that offer not just capital but the right connections to succeed quickly.
A critical partnership for Arbiter was with Dr. Eric Moskow. When they met in 2022, they shared concerns over the fragmented healthcare system. This partnership led to Arbiter acquiring a data platform from Moskow’s company, SecondWave Delivery Systems. This platform aggregates patient information, allowing for improved healthcare decisions.
Arbiter is building AI technology to enhance patient engagement. Their AI agents will reach out to patients for scheduling and follow-ups—something currently in use with several health plans. The goal is to create a unified healthcare system that functions like a well-conducted orchestra, coordinating various players efficiently.
As for future growth, Arbiter is eyeing acquisitions of tech solutions with solid data foundations to further boost their capabilities. The startup wants to move healthcare from a reactive to a proactive model, using predictive AI. This could redefine how healthcare is managed, addressing issues before they escalate.
Carnahan’s ambitions put her in a competitive field, not just with startups focused on AI engagement, but also with more established healthcare companies. To tackle these challenges, she has assembled a team of experienced advisors, including Dr. Clive Fields and Dr. Ainsley MacLean. Dr. MacLean, a former leader at Kaiser Permanente, believes Arbiter’s technology could lead to significant advancements in healthcare.
In summary, Carnahan’s fresh approach with Arbiter showcases a pivot in how startups can thrive without traditional VC funding. Her journey speaks to the evolving landscape of healthcare startups and the importance of strategic partnerships in driving innovation.
For further insights, you can explore statistics about healthcare funding trends at the National Venture Capital Association.
Source link
