As startup valuations decline and venture capital seeks novel opportunities, Bambu Ventures, an early-stage VC firm, recently acquired telemedicine company Lemonaid Health for just $10 million—a steep discount from the $400 million 23andMe originally paid. Lemonaid had operated as a division of 23andMe until the DNA testing company filed for Chapter 11 bankruptcy. Bambu Ventures’ acquisition from the bankruptcy proceedings reflects a private-equity styled approach within venture capital, aimed at reviving distressed assets.
Kyle Pretsch, COO of Lemonaid SPV Inc. and Bambu Ventures general partner, explained that the firm plans to operate Lemonaid independently, backing a vision to increase healthcare accessibility and transparency. He emphasized that the value of Lemonaid has not deteriorated despite the bankruptcy. The acquisition involved bidding higher than other interested parties like Regeneron and TTAM Research Institute, both of which excluded Lemonaid from their bids.
The acquisition was executed through a special purpose vehicle rather than through Bambu’s existing funds, highlighting a blend of venture growth ambitions with private equity discipline. Post-acquisition, Bambu intends to grow Lemonaid by investing in marketing, product enhancements, and expanding patient reach. The company aims to coexist with competitors such as Ro and Hims & Hers, focusing on providing a holistic and improved healthcare consumer experience rather than direct confrontation.
This deal showcases a unique, hybrid approach that merges venture capital agility with private equity rigor to unlock value in overlooked companies, marking a novel strategic move for Bambu Ventures and the telemedicine sector.
