EverlyWell’s food sensitivity kit
Austin-based diagnostics startup EverlyWell announced it has raised $2 million to expand their direct-to-consumer diagnostic testing business. Led by NextGen Venture Partners, SoGal Ventures, Full Tilt Capital and others, this new round will help the company offer additional tests and generally grow the business.
The company has raised $5 million to date.
Founded in 2015, EverlyWell’s mission is to make routine diagnostic tests more consumer-friendly. Rather than hunkering down in a crowded laboratory waiting room, customers order tests online, package samples at home and send them to an affiliated lab.
With customers in 46 states, EverlyWell is growing rapidly and has more big plans on the horizon.
Julia Cheek, EverlyWell CEO and cofounder, said in an email that the funding will help the company expand its suite of tests, hire key leadership positions, launch new partnerships and enhance product features this year.
The diagnostics business offers food sensitivity, thyroid, metabolism, sexual health and other tests, which run between $70 and $400. Results are reviewed by physicians and posted to the company’s online portal, with colorful charts to simplify interpretation. According to CEO and co-founder Julia Cheek, the idea seems to be catching on.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
“We now have 15 full-time employees, several lab partners, thousands of customers, and a great team of investors,” said Cheek via email. “We are growing 20 percent month over month and, less than a year in, have sold millions of dollars of kits.”
The ultimate goal is to make the testing process more user-friendly, though at a price. Customers can pay through their Flexible Spending or Health Savings accounts, but the tests are generally not covered by insurance. Cheek does not see that as a barrier.
“Right now, lab testing costs are not transparent,” said Cheek. “Consumers do not know how much they will pay, and often are hit with surprising bills after the fact. For people with high-deductible healthcare plans, EverlyWell’s tests are often a much less expensive alternative, plus more convenient and digestible.”
Personalized testing is a significant market, around $250 billion a year according to Cheek, though that includes genomic tests like 23andMe, wearables and telemedicine.
“What’s missing from the health tools conversation is lab testing, which is arguably the most important in preventing chronic illness,” said Cheek.
