GEM HEALTH, a virtual sleep care company, has raised $7 million in Series A funding, which will help the startup expand its sleep services, it announced on Tuesday.
Minneapolis, Minnesota-based GEM HEALTH treats patients in all 50 states and is in network with multiple health plans, including UnitedHealthcare, MultiPlan, Aetna and Surest. The company offers virtual visits, at-home testing, diagnosis, prescribing, durable medical equipment, coaching and patient monitoring. Its first product is called GEM SLEEP and supports people with obstructive sleep apnea.
The Series A round was co-led by HealthTrend Capital and LFE Capital and included participation from existing investors Base10 Partners and Mairs & Power Venture Capital. In total, the startup has raised about $13 million.
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“GEM HEALTH is transforming sleep care with an accessible, outcomes-driven virtual solution that improves lives and reduces healthcare costs,” said TJ Nahigian, co-founder and managing partner of Base10 Partners, in a statement. “We’re proud to support their mission to make high-quality sleep care more convenient and affordable nationwide.”
With the financing, the company will invest in growing its reach with patients and adding talent in key areas, according to Brian Sauer, founder and CEO of GEM HEALTH. In addition, the funding will help the startup expand into supporting new conditions and markets.
The company’s support is needed because “conditions that require significant coordination across multiple services have been less represented in virtual care developments,” Sauer argued. He gave the example of obstructive sleep apnea. In order to get treated for this, patients have to go to a sleep specialist, a separate sleep lab, back to the specialist, and then to a provider for durable medical equipment. He noted that obstructive sleep apnea is very common, but 80% of those with the condition are undiagnosed.
“This is due in large part to the convoluted path that patients have historically been required to travel to get care,” he said in an email. “GEM connected each of these steps into one streamlined experience that can be done from home. The patient can go through each step on their own time and terms, all with GEM. Because of that, we can get patients on treatment in weeks rather than months. We’ve also built out the follow-up support so that people who start treatment stay on it.”
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When asked about the company’s ultimate goals, Sauer said he hopes to disrupt traditional models and create a network of offerings that “work seamlessly together.”
GEM HEALTH isn’t the only health tech company trying to advance sleep care. Others include Oura and Dreem Health.
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