Function Health Raises $298M Series B at $2.5B Valuation

The Growing Volume of Personal Health Data

The quantity of health-related information generated by individuals is increasing at an unprecedented rate. This data originates from sources like electronic health records, blood analyses, and the continuous output of wearable devices. However, many individuals find it challenging to consolidate this wealth of information into a coherent understanding and leverage it for proactive health management.

Function Health's Approach and Recent Funding

Function Health, a company specializing in regular lab testing services for health tracking, aims to address this issue. Their strategy centers on unifying health data and making it accessible to users through integration with an AI model. Recently, the company secured $298 million in a Series B funding round, spearheaded by Redpoint Ventures, achieving a valuation of $2.5 billion.

Investors in the Series B Round

The funding initiative also attracted investment from prominent firms and individuals. These include a16z, Aglaé Ventures, Alumni Ventures, NBA players Allen Crabbe, Blake Griffin, and Taylor Griffin, Battery Ventures, NFDG (the investment firm of Nat Friedman and Daniel Gross), and Roku founder Anthony Wood. This round brings the total funding raised by Function Health to $350 million.

Introducing the Medical Intelligence Lab and AI Chatbot

Concurrently with the funding announcement, Function Health introduced the Medical Intelligence Lab. This initiative focuses on developing a generative AI model – termed “medical intelligence” – designed to deliver personalized health insights. These insights are derived from user data, relevant content, and ongoing research.

The company emphasizes that the model is trained and overseen by qualified doctors. Function Health is now offering its customers an AI chatbot capable of answering health-related questions. This chatbot utilizes a user’s historical lab results, physician’s notes, and imaging scans to provide customized guidance.

CEO Jonathan Swerdlin on the Future of AI and Health

“The current landscape is insufficient if AI exists without application to personal health,” stated Jonathan Swerdlin, CEO and co-founder of Function Health, in an interview with TechCrunch. “Individuals should have the capacity to actively manage their biological functions. Function Health’s core objective is to apply cutting-edge technology to enhance human health.”

Data Security and Privacy

Swerdlin underscored the platform’s adherence to HIPAA standards, complete data encryption, and a firm commitment to never selling personal information. “User data and identity are never compromised for sale. All information is fully encrypted and rigorously protected. We prioritize the safety of both you and your data.”

Leadership of the Medical Intelligence Lab

The development of the MI Lab is jointly led by Function’s chief medical scientist, Dr. Dan Sodickson, and its co-founder and chief medical officer, Dr. Mark Hyman. They are supported by a dedicated team of doctors, researchers, and engineers. Doctors remain actively involved throughout the AI model’s training process, Swerdlin confirmed.

Function Health's Competitive Advantage

While the health data and AI space is becoming increasingly crowded, Function Health differentiates itself from competitors like Superpower, Neko Health, and InsideTracker through its device-agnostic approach. Swerdlin explained that the platform integrates lab testing, diagnostic evaluations, and clinical insights, offering a more comprehensive solution than typical AI coaching or wellness applications.

Expansion of Function Scans and Lab Access

Function Scans, the company’s advanced MRI service for early detection, is presently available at 130 locations and is projected to expand to 200 sites by the end of 2025. Furthermore, Function members have access to lab tests at 2,000 Quest Diagnostics locations, as recently updated. The company reports having completed over 50 million lab tests since 2023.