GEM HEALTH, a pioneering virtual sleep care company, has successfully secured $7 million in Series A funding, a significant investment that will enable the startup to broaden its innovative sleep services. This announcement was made on Tuesday, marking a crucial step forward for the company in its mission to improve sleep health across the nation.
Based in Minneapolis, Minnesota, GEM HEALTH provides comprehensive treatment options to patients in all 50 states and is affiliated with various health insurance plans, such as UnitedHealthcare, MultiPlan, Aetna, and Surest. The company specializes in offering a range of services including virtual consultations, at-home testing, diagnosis, prescription services, durable medical equipment supply, coaching, and ongoing patient monitoring. Their flagship product, GEM SLEEP, is designed to assist individuals suffering from obstructive sleep apnea, a condition that affects millions.
The Series A funding round was co-led by HealthTrend Capital and LFE Capital, with additional participation from existing investors including Base10 Partners and Mairs & Power Venture Capital. With this latest round, GEM HEALTH has amassed a total of approximately $13 million in funding to date, highlighting strong investor confidence in its business model.
“GEM HEALTH is revolutionizing the realm of sleep care through an accessible and outcomes-focused virtual solution that not only enhances patients’ lives but also significantly reduces healthcare costs,” stated TJ Nahigian, co-founder and managing partner of Base10 Partners. “We are excited to support their mission to deliver high-quality sleep care that is both convenient and affordable across the country.”
With this new financing, the company is poised to expand its patient outreach and recruit top talent in crucial areas, as indicated by Brian Sauer, the founder and CEO of GEM HEALTH. Furthermore, the funding will facilitate the startup’s entry into new markets and the development of additional services aimed at addressing various sleep disorders.
The necessity for GEM HEALTH’s services is underscored by Sauer, who noted that “conditions requiring intricate coordination across multiple healthcare services have not been adequately represented in the evolution of virtual care.” He specifically mentioned obstructive sleep apnea, a prevalent condition that often necessitates visits to specialists, sleep labs, and equipment providers, resulting in lengthy and complicated treatment pathways. Alarmingly, about 80% of individuals suffering from this condition remain undiagnosed.
“This problem largely stems from the historically convoluted journey patients have had to navigate to receive care,” he explained in an email. “GEM has streamlined this process into a single, cohesive experience that can be managed from the comfort of home. Patients can progress through each phase at their convenience, allowing for treatment initiation in weeks rather than months. Additionally, we have developed robust follow-up support to ensure that patients adhere to their treatment plans.”
When discussing the company’s long-term aspirations, Sauer expressed his desire to disrupt conventional healthcare models and establish a cohesive network of services that collaborate seamlessly to enhance patient care.
GEM HEALTH is not alone in its quest to innovate sleep care; other notable health technology companies, such as Oura and Dreem Health, are also making strides in this vital area of healthcare.
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