Carallel, a startup that provides digital tools to support family caregivers, raised $8.2 million in Series A funding last week. The company got its name by combining “care” and “parallel” because its goal is to “walk alongside family caregivers as they navigate the twists and turns of a caregiving journey,” said CEO Shara Cohen.
The Chicago-based startup was founded in 2017 with the mission to make the country’s more than 50 million family caregivers feel more prepared and confident in their efforts. The average caregiver spends 24 hours per week caring for their loved one, with many providing more than 40 hours of care per week without compensation or support, Cohen pointed out.
“Healthcare’s reliance on family caregivers does not come without a cost,” she explained. “Caregivers experience higher rates of serious illness, a high degree of financial strain and instability, and significant adverse mental health symptoms. This creates significant risk for health plans both as the insurer of the caregiver and as the insurer of the care recipient.”
To address this problem, Carallel’s platform gives caregivers access to “care advocates.” These advocates lend an empathetic ear to caregivers and understand their challenges, as well as offer assistance and coach them through personalized action plans. Carallel’s platform also provides online resources and educational training, Cohen said.
Carallel’s services are offered as a benefit by health plans and employers. The services are offered to any member/employee who is caring for a loved one or any caregiver who is caring for a member/employee, Cohen explained.
More than 400,000 members insured by Medicare Advantage and commercial plans currently use Carallel. With its new influx of funds, the startup plans to expand its reach to more payers, as well as expand its platform to include more peer-to-peer support and targeted care interventions. As 2023 approaches, Carallel is planning to launch new programs with payers, including NextBlue of North Dakota, Priority Health and Vermont Blue Advantage.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Even though the investment market has tightened, Cohen said Carallel saw eagerness from investors during its Series A fundraising effort, which took eight months. The funding round was led by FCA Venture Partners, with participation from 450 Ventures, Create Health Ventures, Gratitude Railroad, Loud Capital and Wanxiang Healthcare Investments.
“With large, established health plan customers and the experience we have nationally with the Caregiver Action Network, we found a lot of enthusiasm from the investor community,” she declared. “My advice to others is to make sure that the fundraise doesn’t become too distracting and that you empower your teams to execute on the fundamentals of your game plan. It’s a long process and investors will be watching for progress along the way.”
But Carallel is not the only platform for family caregivers. For instance, there’s also Ianacare and eFamilyCare.
In Cohen’s view, her company differentiates itself from competitors through its focus on “delivering expansive, broad support to caregivers, as well as deploying specific targeted programs that address the unique challenges of specific caregiving moments that impact healthcare performance.” She also said Carallel stands out because it provides “frictionless access to compassionate experts.”
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