- GEM HEALTH is a nationwide virtual specialty clinic providing timely, convenient, and insurance-accessible specialty sleep care services
- GEM SLEEP provides a focused and simplified end-to-end solution, from diagnosis to treatment and support, for those who may have obstructive sleep apnea
- GEM secured a $7M Series A round of financing co-led by HealthTrend Capital and LFE Capital, with participation from Base10 Partners and Mairs & Power Venture Capital
MINNEAPOLIS, March 4, 2025 — Gem Specialty Health, Inc. (GEM HEALTH), the nationwide virtual specialty care company transforming sleep care, announced today a $7M Series A funding round co-led by HealthTrend Capital and LFE Capital, with participation from existing investors Base10 Partners and Mairs & Power Venture Capital.
With the funding, GEM HEALTH will rapidly expand its cutting-edge virtual sleep services and further develop solutions for patients. This will enable GEM HEALTH to scale its evidence-based, patient-friendly and outcomes-driven approach to care that is helping thousands of individuals improve their sleep across the nation.
The company’s first offering, GEM SLEEP, removes the barriers to treating sleep conditions including obstructive sleep apnea. GEM SLEEP performs clinical evaluation, diagnosis, treatment set up 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 lowering costs for patients and insurers. 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 funding marks a pivotal moment in our journey,” said Brian Sauer, Founder and CEO of GEM HEALTH. “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.”
In conjunction with the financing, LFE Capital Partner, Laurent Frecon, joined GEM HEALTH’s Board of Directors.
“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,” said Laurent Frecon.
Bill Brinkman, Managing Partner at HealthTrend Capital and a member of GEM HEALTH’s Board of Directors, said, “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.”
This Series A 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.
“GEM HEALTH is transforming sleep care with an accessible, outcomes-driven virtual solution that improves lives and reduces healthcare costs, ” said TJ Nahigian, co-founder and Managing Partner, at Base10 Partners. “We’re proud to support their mission to make high-quality sleep care more convenient and affordable nationwide.”
For more information on GEM HEALTH and their innovative virtual sleep apnea solutions, visit mygemsleep.com.
About GEM HEALTH
GEM HEALTH removes the frustration of not knowing where to start or the next steps when navigating a new condition. GEM’s first product, GEM SLEEP, helps the estimated 30 million people with obstructive sleep apnea find relief. GEM provides a simple guided experience through diagnosis, treatment, and ongoing support, reducing the time to relief from months to weeks. GEM SLEEP treats patients in 50 states and is in-network with 53 million Americans’ health plans ensuring broad access to care. To learn more about GEM, visit www.mygemsleep.com or follow us on LinkedIn.
People wanting to get started with GEM can access care via www.mygemsleep.com. Health plans or employers that want to offer GEM SLEEP to their members can email [email protected].
About HealthTrend Capital
HealthTrend Capital is a healthcare-focused, stage-agnostic venture growth equity firm. It makes investments in healthcare software and services companies through a flexible model that allows it to lead deals or co-invest alongside leading venture capital and private equity firms in the pursuit of driving growth. HealthTrend provides deep healthcare expertise and relationships, advisory and operational networks of highly-specialized talent, experience in both investing and company-building, and a genuinely collaborative culture. Learn more at www.healthtrendcap.com.
About LFE Capital
LFE Capital is a growth equity firm that provides expansion capital for health and wellness businesses with strong growth prospects. LFE invests in products and services that increase healthspan and reduce healthcare costs. A relationship with LFE brings capital and an operations-oriented investment team who dedicates the time and resources to build a successful business. For more information visit us at www.lfecapital.com.
About Base10 Partners
Founded by Adeyemi Ajao and TJ Nahigian, Base10 is a San Francisco-based venture capital fund investing in founders who believe purpose is key to profits and in companies that are automating sectors of the Real Economy. Through its program the Advancement Initiative, Base10 donates a portion of firm profits to underfunded colleges and universities to support financial aid and other key initiatives. Portfolio companies include Notion, Figma, Stripe, Popmenu, and Nowports. Connect via base10.vc.
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SOURCE GEM HEALTH
