GetLabs Launches with $3 Million to Revolutionize At-Home Medical Testing

Getlabs Secures $3 Million Seed Funding to Expand At-Home Lab Services

Individuals experiencing health concerns often face delays between initial consultation and definitive diagnosis due to the time required for laboratory testing. Getlabs, a company focused on streamlining this process through at-home blood-drawing services, has announced the successful completion of a $3 million seed round. This funding round was spearheaded by PivotNorth Capital.

Expansion Plans and Initial Markets

The newly acquired capital will facilitate the launch of Getlabs’ services in Phoenix, Philadelphia, and Dallas. These cities have already undergone initial, limited-scale testing of the service.

Addressing Lab Test Compliance

Lab results are fundamental to approximately 70% of all medical decisions. However, a significant 30% of patients do not adhere to prescribed lab orders. Getlabs aims to mitigate this issue by removing obstacles associated with traditional lab visits.

The service allows a qualified phlebotomist to draw blood in the comfort of a patient’s home. This collected sample can then be processed by a lab of the patient’s choosing, with existing partnerships including Labcorp and Quest Diagnostics.

Cost and Insurance Coverage

Getlabs charges a fee specifically for the blood-drawing service itself. The subsequent processing of the blood work is typically covered by the patient’s existing insurance plan, mirroring standard procedures.

Currently, the cost for an at-home blood draw with Getlabs ranges from $29 to $49, dependent on the desired appointment time. Founder and CEO Kyle Michelson notes this is comparable to the $25 blood-drawing fee often charged by conventional labs, which is typically not covered by insurance.

The Genesis of Getlabs

The concept for Getlabs originated from a personal challenge experienced by founder Kyle Michelson.

While participating in the Y Combinator program, Michelson found the process of obtaining lab tests to be excessively time-consuming and disruptive to his entrepreneurial efforts. He spent valuable time traveling to labs and enduring lengthy wait times.

Identifying a Key Barrier to Healthcare Access

Research indicated that inconvenience was the primary reason individuals postponed or skipped necessary lab tests.

A Shift Towards Convenient Healthcare Solutions

Traditional healthcare often necessitates multiple trips – to the physician, the lab, back to the physician, and finally to the pharmacy. However, the rapid expansion of virtual care, alongside companies like Capsule, Amazon Pharmacy, and PillPack offering prescription delivery, highlighted a need for a more convenient lab testing solution.

Company Overview and Future Goals

Getlabs operates as a fully remote organization with a team of 37 employees. The company intends to utilize the seed funding to broaden its service area to include Phoenix, Philadelphia, and Dallas, as well as explore opportunities within other segments of the home health market.

Additional investors in this funding round include Tusk Venture Partners, Rosecliff Ventures, Liquid 2 Ventures, CityLight Capital, Karlin Asset Management, and angel investor Matthew Dellavedova.

Industry Perspective

Tim Connors, founder and managing partner at PivotNorth Capital, expressed his belief that Getlabs represents a crucial component in the evolution of at-home healthcare, particularly as telemedicine gains wider acceptance.

The company’s ultimate objective is to integrate seamlessly with telemedicine platforms, enabling patients to receive comprehensive care without ever leaving their homes.

Potential for Collaboration

Edvard Engesaeth, co-founder of Nurx, suggests that Getlabs could be a valuable partner for healthcare companies like Nurx, facilitating the remote treatment of more complex conditions that require in-person blood draws.