Gem Specialty Health, a nationwide virtual specialty care company transforming sleep care, announced a $7 million Series A funding round co-led by HealthTrend Capital and LFE Capital. Existing investors Base10 Partners and Mairs & Power Venture Capital participated.
With the funding round, GEM HEALTH will rapidly expand its virtual sleep services and further develop patient solutions. This will enable GEM HEALTH to scale its evidence-based, patient-friendly, and outcomes-driven approach to care, which is helping thousands of individuals improve their sleep nationwide.
The company’s first offering GEM SLEEP removes the barriers to treating sleep conditions, including obstructive sleep apnea. And GEM SLEEP performs clinical evaluation, diagnosis, treatment setup, and support without a patient having to set foot in a clinic. This approach gets patients to care in days rather than weeks or months while reducing costs for patients and insurers. Plus, GEM’s patients also stick with their care and get better: 70% of GEM’s patients continue with their treatment beyond 30 days, compared to the national average of 40%-50%.
This Series A funding round will also support GEM HEALTH’s expansion into new markets and conditions, ensuring that more individuals can take control of their sleep health without traditional barriers like long wait times, cumbersome in-lab tests, and expensive treatments.
LFE Capital Partner Laurent Frecon joined GEM HEALTH’s Board of Directors in connection with the funding.
KEY QUOTES:
“This funding marks a pivotal moment in our journey. We are thrilled to continue leading the charge in virtual sleep care and are committed to expanding access to life-changing treatment for sleep apnea. In addition to improved quality of life, our innovative approach saved patients and insurance providers nearly $15M in healthcare costs in 2024. With the support of our investors, we can accelerate the development of innovative solutions that simplify and personalize the sleep care experience, ensuring more people get the care they need, faster. This investment allows us to scale and deepen our impact on the lives of millions who struggle with sleep health.”
– Brian Sauer, Founder and CEO of GEM HEALTH
“Brian and his team have developed a best-in-class solution that increases access to quality care and improves outcomes. While the business grew 7x in 2024, as it stands today, less than 20% of individuals with sleep apnea receive the treatment they need. LFE Capital is proud to partner with GEM HEALTH on its mission to enable better sleep.”
– Laurent Frecon
“Thanks to the efforts of the GEM team, the company has been able to provide an improved sleep care experience to an expanding group of patients. Having seen GEM’s impressive progress since investing previously, HealthTrend is pleased to invest additional capital to enable the company’s further success.”
– Bill Brinkman, Managing Partner at HealthTrend Capital and a member of GEM HEALTH’s Board of Directors
“GEM HEALTH is transforming sleep care with an accessible, outcomes-driven virtual solution that improves lives and reduces healthcare costs. We’re proud to support their mission to make high-quality sleep care more convenient and affordable nationwide.”
– TJ Nahigian, co-founder and Managing Partner, at Base10 Partners
