junction Raises $18M to Connect Wearables and Labs

The Growing Trend of Wearable Health Data and Junction's Innovative Approach

Utilizing wearables to monitor personal health metrics has become increasingly prevalent. Recent reports indicate that 44% of individuals in the United States currently own a device specifically for health tracking purposes.

Junction, a burgeoning startup, posits that the potential of this collected data extends beyond individual use. They envision a system where this information can be securely shared with research institutions and laboratories, accelerating the pace of healthcare advancements.

Securing Funding for Expansion

On Tuesday, Junction announced the successful completion of an $18 million funding round. This capital injection will be used to further develop and expand their platform, facilitating seamless data exchange between labs and a diverse range of over 500 wearable devices.

The funding round was spearheaded by European venture capital firm Creandum, marking a significant vote of confidence in Junction’s vision.

Competition in the Healthcare Data Integration Space

Junction is not alone in recognizing the value of connecting health data. Companies like Health Gorilla, with $77.7 million in funding, and Change Healthcare, having raised $48 million, are also actively working to bridge the gap between data sources and healthcare providers.

Shifting Healthcare Focus to the Home

Junction, originally founded in London and now based in New York, operates on the principle that the future of healthcare lies in proactive, at-home monitoring rather than reactive hospital visits.

Currently, patients typically visit clinics for diagnostic testing. However, Junction proposes an alternative: continuous data collection through the widespread adoption of wearable technology.

How Junction's Platform Works

“Initially, we concentrated on device integration, creating connections for various medical devices,” explained Maitham Dib, founder and CEO of Junction, in an interview with TechCrunch. “We offer a widget that can be easily integrated into apps or web platforms, enabling patients to securely share their device data.”

The company began by standardizing data from numerous devices and subsequently expanded its services to include lab test ordering. “We now streamline the process of ordering lab tests within the U.S.”

Lessons Learned from Babylon Health

Prior to founding Junction, Dib served as an engineer at Babylon Health, a startup that once boasted a $2 billion valuation. Babylon Health aimed to revolutionize healthcare through AI and telehealth but ultimately faced challenges related to patient safety, governance, and financial sustainability.

A Focused Approach to Healthcare Modernization

Junction is adopting a more targeted strategy, concentrating solely on optimizing the utilization of existing wearable devices to generate data more efficiently and affordably, ultimately improving patient care pathways.

Platform Growth and Usage Statistics

“Currently, we have over 2 million devices connected to our platform,” Dib stated. “We anticipate processing approximately one million lab tests this year, demonstrating substantial real-world application.”

The Junction platform empowers companies to order lab tests across all 50 U.S. states and receive results from over ten laboratories, supporting both in-person and at-home testing options.

Addressing the Rise of Chronic Diseases and Data Management Challenges

Junction’s growth coincides with a critical moment in healthcare. Approximately 60% of U.S. adults live with a chronic condition, often necessitating frequent home monitoring. Care teams currently spend considerable time manually collecting data from these devices.

However, advancements in device technology and data collection methods offer the potential to significantly accelerate this process.

The Importance of Data in Unlocking AI's Potential

“Data represents the primary obstacle to fully realizing the potential of emerging technologies like AI in healthcare,” noted Sabina Wizander, a partner at Creandum. “Much of the existing healthcare infrastructure relies on outdated systems and communication methods, such as fax machines and paper records.”

“Junction addresses this issue by providing companies with the necessary infrastructure for lab testing and device data integration.”

Growing Customer Base

Junction has already established partnerships with over 140 healthcare organizations, including prominent companies like Found, Parsley Health, and Evidation.

Investment Details

In addition to Creandum, this Series A funding round included participation from Y Combinator, Point Nine, and Amino Collective. Junction previously secured seed funding from Point Nine and Y Combinator three years ago.