GEM HEALTH Secures $7M in Funding

MINNEAPOLIS—Gem Specialty Health, Inc., the nationwide virtual care company specializing in sleep care, announced a $7 million 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 plans to rapidly expand its 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.”

The company said its 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 aims to get patients to care in days, rather than weeks or months, while lowering costs for patients and insurers. 

“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 $15 million in health care 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,”  said Laurent Frecon. “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.”

“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,” said Bill Brinkman, managing partner at HealthTrend Capital and a member of GEM HEALTH’s Board of Directors. “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.

“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 its virtual sleep apnea solutions, visit mygemsleep.com.