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9am.health Raises $3.7M for Virtual Diabetes Care

September 20, 2021
9am.health Raises $3.7M for Virtual Diabetes Care

Diabetes Care Innovators Launch 9am.health with $3.7 Million Seed Funding

Entrepreneurs often build businesses centered around their personal experiences, and Frank Westermann and Anton Kittelberger are no exception – their expertise lies in the realm of diabetes.

Having both been diagnosed with type 1 diabetes – Westermann’s diagnosis came over 25 years ago – the two founders connected and subsequently launched the MySugr app in 2012, a tool for self-management of diabetes. They initially gained recognition with a TechCrunch pitch competition win in 2011.

From App to Virtual Clinic

In 2017, Roche acquired MySugr for $100 million. Following this success, Westermann relocated from Austria to the U.S. to introduce the app to the American market.

The pair then embarked on a new venture, 9am.health, established in April as a virtual diabetes clinic. Its aim is to deliver accessible, personalized care and affordable medications to individuals with prediabetes and type 2 diabetes directly within their homes. The clinic officially began operations in August.

Today, the San Diego-based company announced the successful completion of a $3.7 million seed funding round. Investors include Founders Fund, Define Ventures, Speedinvest, and iSeed Ventures. Westermann shared with TechCrunch that this funding will be used to address the needs of the approximately one in three Americans currently living with diabetes.

Addressing Access to Diabetes Care

“We possess a thorough understanding of the daily obstacles faced by those with prediabetes and type 2 diabetes,” Westermann explained. “A significant barrier is access to care. Instead of lengthy waits for appointments, we provide a home testing kit for convenient sample collection.”

9am.health initially launched its services in Texas and California and has since expanded availability to 33 states. Patient acquisition is driven through digital marketing, community engagement, and collaborations with hospitals.

Even with health insurance coverage, individuals with diabetes typically incur around $16,750 annually in medical expenses – approximately 2.3 times higher than those without the condition. 9am.health offers a subscription service starting at $25 per month, encompassing online prescription fulfillment and unlimited access to personal medical consultations.

A Holistic Approach to Chronic Disease Management

Optional add-ons include medications for managing diabetes, hypertension, or hyperlipidemia, alongside convenient at-home lab tests.

While acknowledging other companies operating within the diabetes space, Westermann asserts that 9am.health distinguishes itself by providing “a comprehensive digital gateway to complete diabetes care.” He envisions expanding beyond diabetes to address broader chronic disease management, noting that 98% of Americans with diabetes also experience comorbidities such as high blood pressure, high cholesterol, and mental health concerns.

The new capital will facilitate team expansion and enable 9am.health to capture a portion of the digital diabetes market, which was valued at $13 billion in 2020 and is projected to grow at an annual rate of 18.8% through 2027. Investment will also be directed towards enhancing virtual screening capabilities and broadening the range of available medications.

“Our goal is to eliminate obstacles and simplify care, integrating diabetes management seamlessly into daily life,” Westermann stated. “Living with a chronic illness is an ongoing process, with fluctuating well-being. The name 9am.health reflects the opportunity to begin your diabetes journey anew each day.”

Industry Experts Weigh In

Lynne Chou O’Keefe, founder and managing partner at Define Ventures, believes the future of healthcare will be increasingly patient-centric. She views 9am.health as a leader in this evolution, offering a platform that integrates education, community support, coaching, and direct-to-consumer care.

Chou O’Keefe, with a long-standing career in healthcare investing and prior board membership at Livongo, has observed the challenges patients face in making informed care decisions. She recognizes the founders of 9am.health as possessing a similar depth of expertise and understanding of diabetes, particularly given their success with MySugr.

“Healthcare should be most accessible not within a doctor’s office, but wherever the patient is located,” she added. “This represents a significant departure from the current healthcare paradigm. We believe individuals are motivated to manage their diabetes and continue living fulfilling lives.”

9am.health launches with $3.7m to tackle virtual diabetes care