Blackstone in Talks to Back Carbon Health at $3 Billion Valuation

Carbon Health Technologies Inc., a startup that provides in-person and virtual health-care services, is in talks for new funding at a valuation of roughly $3 billion after shelving talks to go public through a blank-check company, according to people with knowledge of the matter.

The San Francisco-based company is discussing raising a roughly $300 million round from investors including Blackstone Group Inc. and Capital Group, one of the people said. The funding, which will be used to acquire additional clinics, emerged as a preferred alternative to a merger with a special purpose acquisition company, which the company explored, said people familiar with the matter. Terms of the funding round haven’t been finalized and it’s possible they could change.

Blackstone’s investment is set to be made from the New York firm’s Blackstone Horizon business, led by Chief Investment Officer Scott Bommer, one of the people said. That arm of Blackstone will “employ a thematic approach to capitalize on powerful secular growth trends globally,” the firm said in a statement announcing Bommer’s hire in March.

Carbon Health and Capital Group representatives didn’t immediately respond to requests for comment. A Blackstone representative declined to comment.

San Francisco-based Carbon Health raised $100 million in November from investors including Dragoneer Investment Group, according to a statement at the time. The company, led by Chief Executive Officer Eren Bali, counts Brookfield Technology Partners, DCVC and Builders VC among its other investors.

Carbon Health is among a multitude of startups using technology to make health care more efficient and accessible. Patients can use an app to schedule appointments in person or virtually, access their records and chat with doctors. Its clinics provide primary care, urgent-care services and access to specialists in California, Alabama, Florida, Nevada, and New York. The company has administered about 1.5 million Covid-19 vaccines and about 730,000 tests, according to its website.

The startup provides access to in-person and virtual care to “nearly two-thirds of the U.S,” according to a January press release. In November it said it planned to expand to 1,500 clinic locations over the next five years. The company’s insurance partners include Aetna, Anthem, Humana and Cigna.

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