Karoo Health, a venture-backed cardiac health firm founded in Albuquerque, is moving its base to downtown Denver after signing a three-year office lease at 1925 Blake St. The startup, which launched in 2021 and partners with cardiology practices across the country, says it has outgrown its New Mexico roots and could no longer easily find the workforce it needed to keep growing.
According to the Albuquerque Journal, co-founder and CEO Ian Koons said Karoo had simply outgrown its New Mexico roots and that building a full-sized business there had proven difficult because of talent availability. Koons also told the paper that concerns about crime and school quality could deter young professionals from settling in Albuquerque, and that New Mexico's economic development incentives have been concentrated around quantum computing, leaving less funding and support available for health and biotechnology firms like his. Karoo currently has four or five corporate employees based in Albuquerque working remotely, out of 80 corporate employees scattered around the country, and Koons hopes to bring about 80% of that workforce into the new Denver office.
Why Denver, and Why Now
As reported by the Denver Business Journal, the company cited the city's health tech ecosystem and access to the central airport as key factors in its move downtown. The same outlet reported that Karoo Health did not seek relocation incentives from Colorado officials. Koons also told the Albuquerque Journal that Denver offers a superior concentration of talent that could enable more local hires, and he estimated he had personally taken 75 flights so far this year, including 40 trips to Denver alone.
Karoo's platform coordinates care through an online system that aggregates patient data and flags health risks, while connecting patients to wraparound services such as nutritionists and pharmacists employed directly by the startup. Per Dealroom, the company describes its platform as connecting payers, providers and patients through a unified data and workflow layer. If its services improve health outcomes and lower care costs, Karoo splits those savings with insurers and providers under its partnerships with national and regional insurers.
Growth Numbers and a Funding Gap to Fill In
Koons told the Albuquerque Journal that Karoo now serves nearly 20,000 patients and works with 700 cardiology providers across 12 states. That figure diverges from a July report from Albuquerque Business First, which said the company served more than 600 cardiology providers across 11 states at the time of its Series A raise — a discrepancy the available reporting does not explain.
Karoo has pursued expansion in recent years, raising nearly $35 million in total investments, according to Koons. The company secured $16.2 million in a Series A round this summer led by two venture capital firms, Koons said. Albuquerque Business First reported the round was led by 7wire Ventures and Allumia Ventures, with participation from First Trust Capital Partners, SpringRock Ventures, Hyde Park Angels and other investors, and that the company was preparing to launch with additional health plans later this year.
A Shift From the Company's Original Ambitions
The move marks a reversal from Karoo's earliest plans. Back in 2023, company officials said they wanted the startup's first rollouts to happen in New Mexico and hoped to eventually bring a workforce of around 200 people to the state over four to five years, according to a 2023 report from Albuquerque Business First, which also noted the company had raised $3.4 million at the time to expand its value-based heart care system. Karoo also named Pia Shivdasani as its new chief operating officer, Albuquerque Business First reported.
