Jasper Health, a cancer care platform startup, has recently undergone a significant workforce reduction, according to employees who shared their experiences on LinkedIn. The layoffs affected departments such as engineering and product design. Although the exact number of employees impacted has not been independently verified, an industry source familiar with the situation suggests that roughly half of Jasper Health’s small team was let go. Prior to the cuts, Jasper Health had around 48 employees, as reported by PitchBook data.
Despite attempts to reach out to the CEO and other executives for a comment, TechCrunch did not receive a response. The lack of communication raises questions about the circumstances surrounding the layoffs and the company’s future plans.
In February 2022, Jasper Health secured a Series A funding round of $25 million led by General Catalyst, with participation from Human Capital, W Health Ventures, Redesign Health, and 7wireVentures. Their total venture capital raise at that time amounted to $31 million. Notably, General Catalyst is a well-known investor in the healthcare sector and has shown a strong interest in backing startup-led healthcare technology. Earlier this year, the venture capital firm even acquired Suma Health, an Ohio-based health system, further emphasizing its commitment to revolutionizing the US healthcare system. However, Jasper Health’s recent layoffs demonstrate that not all General Catalyst-backed health tech startups are guaranteed success.
Moreover, Jasper Health’s origins make it an interesting case study. The startup was conceptualized and launched in 2018 by Redesign Health, a venture firm and studio known for creating innovative healthcare companies. Redesign Health, led by CEO Brett Shaheen, has developed 50 healthcare startups in total, raising a cumulative $1.3 billion in funding. Redesign Health itself has received backing from notable limited partners (LPs) like General Catalyst, CVS Health Ventures, and Samsung Next. However, Redesign Health also faced its own rounds of layoffs earlier this year, indicating the challenges and uncertainties inherent in the healthcare startup landscape.
Jasper Health differentiates itself by offering a digital platform that combines human-led care navigation, patient support, and remote patient monitoring. Additionally, the company provides psychosocial care to enhance the holistic well-being of cancer patients. Notably, roughly 12% of Jasper Health’s users are individuals in remission from cancer, highlighting the platform’s potential to support patients across various stages of their cancer journey.
The founder of Jasper Health, Adam Pellegrini, has an extensive background in healthcare. He began his career as a surgical specialist in the US Army and played a crucial role in building the American Cancer Society’s website, which serves as a valuable resource for cancer patients and caregivers. Prior to establishing Jasper Health, Pellegrini served as the senior vice president of virtual care and consumer health innovation at CVS Health, further demonstrating his expertise in the healthcare industry.
Jasper Health faces competition from other cancer care platform startups such as Thyme Care and Reimagine Care. The landscape of digital healthcare providers focusing on cancer care continues to evolve as more startups enter the market. It remains to be seen how Jasper Health will navigate this competitive landscape while also addressing the challenges posed by the recent layoffs.
In conclusion, Jasper Health’s recent layoffs raise questions about the company’s future trajectory. As a General Catalyst portfolio company and a product of Redesign Health’s innovation studio, Jasper Health initially seemed poised for success. However, the setbacks faced by both Jasper Health and its parent company highlight the volatile nature of the healthcare startup ecosystem. Moving forward, it will be crucial for Jasper Health to reassess its strategy, ensure open lines of communication with employees and investors, and develop innovative solutions to remain competitive in the cancer care market.
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