Revolutionizing Healthcare with AI: Function Health’s $298M Series B

The healthcare industry is experiencing a data explosion, from electronic health records to wearable device outputs and regular blood tests. However, many individuals find it challenging to effectively utilize this wealth of information to improve their health. Function Health aims to bridge this gap by consolidating health data and leveraging AI to provide actionable insights.

Function Health Secures $298M in Series B Funding

Function Health, a company offering lab testing services, recently secured $298 million in a Series B funding round. Redpoint Ventures led the round, valuing the company at $2.5 billion. The new funding will propel its mission to transform health data into personalized health improvements through their AI model.

The funding also saw participation from a16z, Aglaé Ventures, Alumni Ventures, NBA athletes Allen Crabbe, Blake Griffin and Taylor Griffin, Battery Ventures, NFDG, the investment firm of Nat Friedman and Daniel Gross, and Roku founder Anthony Wood. In total, the company has now raised $350 million.

Introducing Medical Intelligence Lab

Along with the funding announcement, Function unveiled its Medical Intelligence Lab, focused on developing a generative AI model for personalized health insights. This “medical intelligence” model is trained by doctors and aims to provide tailored guidance based on a user’s health data, content, and research. Function Health is offering its customers an AI chatbot that draws on previous lab results, doctor’s notes, and scans to answer health-related questions.

The Vision Behind Function Health

Jonathan Swerdlin, CEO and co-founder of Function Health, emphasized the importance of integrating AI into healthcare, stating, “It is not good enough to be in a world where AI exists and not be applying it to your health. You should be able to manage your biology. The objective of Function Health is to apply the best available technology to human health.”

Data Security and Privacy Commitment

Swerdlin assured users that the platform adheres to HIPAA standards, fully encrypting user data and never selling personal information. “Your data and your identity are never for sale. Every bit of your information is fully encrypted and protected. We are committed to keeping you, and your data, safe.”

Medical Expertise Driving AI Development

Function’s chief medical scientist, Dr. Dan Sodickson, and its co-founder and chief medical officer Dr. Mark Hyman, are together spearheading the development of MI Lab, supported by a team of doctors, researchers, and engineers. Swerdlin confirmed that the MI model is trained by doctors who remain actively involved in the process.

Differentiation in a Competitive Market

While numerous players occupy the health tech space, Function distinguishes itself from competitors like Superpower, Neko Health and InsideTracker through its device-agnostic approach, according to Swerdlin. He added that the platform offers more than just an AI coach or wellness app by integrating lab testing, diagnostics, and clinical insights.

Expanding Accessibility

Function currently operates in 75 locations across the U.S. and aims to expand to nearly 200 locations by the end of the year. Since 2023, Function reports that it has conducted more than 50 million lab tests.