GEM HEALTH Raises Additional Financing to Expand GEM SLEEP Virtual Care to Millions of People Suffering from Sleep Conditions
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• GEM HEALTH is a nationwide virtual clinic providing timely, convenient, and insurance-accessible specialty care services
• GEM SLEEP provides a focused and simplified end-to-end solution, from diagnosis through treatment and support, for those who may have obstructive sleep apnea
• GEM secured a Seed round of financing led by HealthTrend Capital, with participation from Base10 Partners and Mairs & Power Venture Capital
MINNEAPOLIS, September 11, 2023-- Gem Specialty Health, Inc. (GEM HEALTH), a nationwide digital specialty care clinic, announced today it has successfully raised a Seed financing round led by HealthTrend Capital, with participation from existing investor Base10 Partners and new investor Mairs & Power Venture Capital. GEM HEALTH has now raised over $5 million to date.
GEM HEALTH develops innovative specialty care models to remove the complexity and accessibility gaps that cause millions to forego essential care each year. The company's first offering, GEM SLEEP, is tackling the fragmented path to getting diagnosis, treatment, and support for sleep conditions including obstructive sleep apnea (OSA). Thirty million Americans live with OSA today, but five out of six individuals are not adequately treated. Instead, they get stuck navigating the diagnosis process or struggle to start treatment without support.
GEM SLEEP removes these barriers with a comprehensive digital solution that is simple to use, is available on demand, and provides personalized support. This approach gets patients to care in days, rather than weeks or months, while lowering costs for patients and insurers. GEM's patients also stick with their care and get better: 70% of GEM's patients continue with their treatment beyond 30 days, compared to the national average of 40%-50%.
"We started in obstructive sleep apnea because we witnessed firsthand the tradeoff many patients were making with regards to their care – trying to decide if they should go to traditional providers and wait 3-4 months for care or try an online option that does not accept insurance and may not have clinical rigor. Millions of patients just give up and continue to live with OSA," said Brian Sauer, Founder and CEO, GEM HEALTH. "Patients do not want to have to choose between convenient, clinically sound, and insurance-covered. They want all those things in a single experience. We are proud to say that GEM has built this model and will be rapidly scaling it with the support of our latest investment."
GEM HEALTH was founded in 2022 by Brian Sauer. Prior to starting GEM, Sauer was the CEO at Sanvello, a leading mental health application for health plans and businesses looking to provide mental health and wellness services to members and employees. The business grew to 3M+ users and $10M in annualized revenue and was sold in 2021.
With this funding, GEM is expanding payment options by offering insurance coverage through more local and national health plans, making convenient care affordable to millions.
In conjunction with the financing, HealthTrend Capital's Managing Partner, Bill Brinkman, and Sam Meckey, CEO of UpHealth (NYSE: UPH) joined GEM HEALTH's Board of Directors. "I am excited to partner with GEM in its mission to improve the sleep care experience. The company's comprehensive approach streamlines the journey for patients navigating complex conditions, ultimately improving outcomes and reducing costs," said Brinkman. "I look forward to working with Brian and the broader GEM team to support their growth and success."
OSA sufferers and their bed partners can get started with GEM SLEEP at www.mygemsleep.com. Health plans or employers that want to offer GEM SLEEP to their members can email firstname.lastname@example.org.
About GEM HEALTH
GEM HEALTH helps people live healthier, happier lives by addressing their specialty conditions from end to end. GEM HEALTH removes the confusion and frustration of not knowing where to start or the next steps when navigating a new condition. GEM's first product, GEM SLEEP, helps the estimated 30 million people with obstructive sleep apnea find relief. GEM SLEEP provides a simple guided experience through diagnosis, treatment, and ongoing support, reducing the time to relief from months to weeks. GEM SLEEP treats patients in 48 states + DC and is actively expanding reimbursement options through health plans and employers to ensure broad access to care. To learn more about GEM HEALTH's approach to obstructive sleep apnea, visit www.mygemsleep.com or follow us on LinkedIn.
About HealthTrend Capital
HealthTrend Capital is a healthcare-focused, stage-agnostic venture growth equity firm. It makes investments in healthcare software and services companies through a flexible model that allows it to lead deals or co-invest alongside leading venture capital and private equity firms in the pursuit of driving growth. HealthTrend provides deep healthcare expertise and relationships, advisory and operational networks of highly-specialized talent, experience in both investing and company-building, and a genuinely collaborative culture. Learn more at www.healthtrendcap.com.
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