RetraceHealth Ceasing Operations
Health care startup RetraceHealth said it will cease operations at the end of the month, citing the inability to identify a long-term business plan.
The Minneapolis-based company, which provides telemedicine, in-home checkups and services like labs and X-rays, said that increased competition that offered similar services and the consolidation of Twin Cities medical providers made it difficult to stay in business.
“Nationally and locally, the health care market is experiencing seismic shifts and unknowns,” the company’s board said in a statement. “As a young company, RetraceHealth fought to find its way in this changing market, but ultimately has decided to cease operations.”
Just last year, the company attracted at least $8 million in funding from a who’s-who of Twin Cities health investors and larger companies like Blue Cross and Blue Shield of Minnesota, HealthEast and McKesson Ventures.
Retrace said the money would be used to expand it reach and cover expenses like marketing, research, malpractice insurance and other costs. But its business model increasingly faced pressure as virtual health providers like Minneapolis-based Zipnosis expanded and quick clinics like UnitedHealth Group-owned MedExpress moved into the Twin Cities.
Signs of potential trouble at the company emerged in November when founders Thompson Aderinkomi and Steven Bayer were reportedly forced out by investors. They served as CEO and CTO, respectively. Angie Franks, a former CMO at Minneapolis startup Sport Engine, was named chief executive.
Earlier this week, the Star Tribune published a profile of Aderinkomi.