Health technology company Function Health recently raised $53 million for their personalized lab testing platform, aiming to be a leader among companies offering biomarker tracking to guide health decisions that support longevity.
Laboratory tests are the cornerstone in the medical industry for accurate and rapid patient diagnosis, treatment, and monitoring. These tests contribute to cost savings and life-saving early disease detection, with 7 to 13 billion performed annually in the U.S.1
While lab tests are traditionally ordered by physicians, more and more companies are offering direct-to-consumer lab testing services spurred by the demand of personalized medicine.
Personalized medicine, driven by genetic and genomic tests, allows for customized treatments that lead to earlier diagnoses, better prevention, and more targeted therapies with fewer side effects.2
As this demand for personalized medicine and longevity services grows, Function Health aims to provide a membership-based platform for preventive medicine and testing.
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Function Health Aims to Bridge Gap in Preventative Healthcare
Function Health and many similar budding companies see themselves as diverging from an industry that traditionally focuses on reactive care.
These companies follow many of the central tenets of functional medicine (which the start-up derives its name from).
At its core, functional medicine relies on preventative strategies and diagnosing the root cause of diseases to maintain holistic health and wellness.
Since its beta launch in April 2023, the company has attracted nearly 50,000 paying members, a waitlist exceeding 200,000 individuals, and a list of celebrity investors.
As for its business model, the company provides lab testing services, offering 100 tests annually at a cost of $499 per year, or approximately $42 per month. These tests cover a wide range of health indicators from heart health to cancer signals and aging factors. They also include non-routine tests that detect for STDs, Lyme Disease, and allergies, among others.
Function Health's testing service is expansive, encompassing five times more tests than typical primary care providers, which average around 19 tests, including your typical CBC and metabolic panels.
Dr. Mark Hyman, co-founder of Function and founder of the Cleveland Clinic Center for Functional Medicine, described the platform's mission as shifting to a more proactive and personalized kind of healthcare.
"We've helped to get from reactive to proactive. It's reflecting a surging demand for health over healthcare," Hyman told pharmaceutical news outlet Fierce Healthcare.
Function Health enables members to take control of their health through a user-friendly dashboard that tracks and displays lab results over time, providing insights and summaries from clinicians.
This capability is beneficial for preventative medicine, allowing users to identify potential health issues before they become symptomatic, as evidenced by cases where members discovered early-stage cancers through the platform's testing.
The membership includes two comprehensive assessments per year: an initial 100-plus test evaluation and a midyear check-in with 60 tests. This extensive testing covers a wide range of biomarkers related to heart health, thyroid function, immune regulation, metabolic issues, and more.
Recent Investments
Although still in its beta stage, the company has already attracted significant investment, recently securing $53 million in a Series A funding round led by Andreessen Horowitz (a16z) Bio + Health.
Notable backers include celebrities, athletes, and wellness advocates such as Matt Damon, Kevin Hart, and Zac Efron, among others. Function plans to utilize this capital to enhance its technology, scale operations, and increase access to whole-body testing.
According to company representatives, they are also working to build a seamless interface with electronic medical records (EMRs) and wearable devices such as Apple Watches to consolidate health data onto a centralized platform. This integration will enhance the ability of users to track their health metrics and make informed health decisions.
NBA star Blake Griffin, who invested in the project, said he “connected deeply” with the company’s mission to optimize health and performance and prevent disease proactively.
Interestingly, Function Health has also partnered with fitness company Equinox, aiming to integrate biomarker testing with personalized training to enhance the overall wellness experience for users.
Rise of Biomarker Testing Companies
The intersection of fitness, biomarker testing, and preventative health is a rapidly growing field.
With more companies offering tech-mediated health consulting and direct-to-consumer lab testing than ever before, there is also a growing demand for clinical laboratory testing providers.3
According to the Centers for Medicare and Medicaid Services (CMS), the number of clinical laboratories in the United States certified under the Clinical Laboratory Improvement Amendments (CLIA) increased by about 13 percent, from 286,396 to 323,086, from 2020-2021. For comparison, the usual growth rate for laboratories per year is around 2 to 3%.
Why is personalized lab testing becoming so popular?
According to experts, COVID-19 was the primary stimulus behind the rise in companies offering these services directly to consumers.4
However, athletes, biohackers and health influences have also brought biomarker testing into the mainstream among health-conscious consumers.
An example of the vast reach of certain biomarker testing companies is the nutrition app Lifesum, which just acquired Lykon, a company specializing in biomarker-based personalized nutrition. 5
As a result of the acquisition, Lifesum's 65 million users will have the chance to perform at-home biomarker tests to understand their nutritional needs and metabolic health.
Biomarker testing has also become widespread in the fitness community.
Many gyms and fitness centers like Equinox, as mentioned above, are in the process of adopting biomarker testing as part of their services.
Fitness SF, a chain of health clubs in the Bay Area, has also partnered with health company InsideTracker to provide personalized biomarker tracking and health recommendations to staff and members.
Similarly, Austin Simply Fit, a chain of personal training studios in Austin, Texas, has teamed up with Keyspan, a wellness and health management platform, to offer biomarker data that informs fitness coaching and training programs.
Hyman spoke of this shift in healthcare, describing a growing need to provide accessible and meaningful health information to consumers who want to take charge of their health.
"I dream of a time when people be able to access what I call 'medical intelligence,' which is the notion that we should be able to access the world's best medical knowledge and not just rely on the one doctor, who is a good person, but has limited experience because he went to one medical school and had one residency and can only read so many papers and attend so many conferences. We can access all the world's wisdom from medical science and from knowledge experts, and it should all be in a tool that you can use and have easy access to that helps you to upgrade your life,” Hyman explained.
Function Health Joins Growing List of Health Tech Start-Ups
Function Health joins a growing list of startups focusing on preventive medicine through advanced diagnostics.
Notable companies in the space include Prenuvo, which offers full-body MRI scans to detect cancers and other diseases, and Simple HealthKit, which provides at-home diagnostic tests.
LetsGetChecked is another health testing company that offers at-home health testing services ranging from sexual health, men's and women’s health, general wellness, and COVID-19 testing. Customers can collect samples at home and send them to CLIA-certified labs for analysis, receiving results and medical insights via their online platform.
Rupa Health, a health tech company that works for functional health practitioners by helping them order and manage specialty lab tests, is also helping to grow the alternative health ecosystem. Their platform consolidates a wide range of lab tests from various providers into a single, easy-to-use interface. This allows healthcare practitioners to order tests, track results, and manage patient care more efficiently.
Viome, a growing company in the space, aims to achieve personalized health through gut microbiome and gene expression testing. Viome analyses stool samples to first gather information about a person’s gut health. Then, based on this information, Viome can offer personalized dietary and supplement recommendations. The company aims to improve overall wellness and prevent chronic diseases by optimizing the gut microbiome.
Ezra and Neko Health, like Prenuvo, offer advanced cancer screening and other scanning technologies. Prenuvo recently had a significant milestone by securing $75 million in funding. One of their scans costs $2,500.
Each of these companies aim to democratize access to health data and empower individuals to improve their health and longevity.
Addressing Health Disparities
Despite the enthusiasm, some in the medical community have raised concerns about the potential for increased health disparities, as such services are not covered by insurance and may be too expensive for those who cannot afford out-of-pocket expenses.
However, Hyman argued that the cost of $1.36 per day is a worthwhile investment in long-term health, and that by investing in preventive health measures, one can ultimately reduce long-term healthcare costs and improve quality of life.
The Future of Preventive Medicine
As more consumers become health-conscious and seek personalized approaches to healthcare, the demand for services like those offered by Function Health is likely to grow.
Function Health's success in securing significant funding and establishing strategic partnerships shows there is a significant buzz in this industry, and we can expect the company to exit its beta stage and launch its main products and services to the general public soon.
By empowering individuals with the tools to take control of their health, the company is hopes to play a pivotal role in the future of healthcare.
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Key Takeaways
- Function Health has raised $53 million to advance its personalized lab testing platform, aiming to lead in the biomarker tracking industry to support preventive healthcare and longevity.
- Clinical lab tests are crucial for patient diagnosis, treatment, and monitoring, with billions conducted annually in the U.S.
- There's a growing trend of companies offering direct-to-consumer lab testing services, driven by the demand for personalized medicine and preventive care.
- Personalized medicine allows for customized treatments that lead to earlier diagnoses, better prevention, and targeted therapies with fewer side effects.
- Function Health offers a membership-based platform with extensive lab testing to empower individuals to take a proactive role in their health.
- The company provides comprehensive lab testing services, significantly more than typical primary care providers, covering a wide range of health indicators and offering insights through a user-friendly dashboard.
- The company has also attracted notable investment and partnerships, including a strategic alliance with Equinox and backing from celebrities and athletes, to enhance its technology and expand access to testing.
- Biomarker testing is becoming mainstream, integrated into fitness and health services, with partnerships and acquisitions expanding to meet the demand of a health-conscious consumer base.
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