Function Health just closed a massive $298 million Series B round at a $2.5 billion valuation, signaling that investors are betting big on AI-powered healthcare platforms. The company, which offers comprehensive lab testing and medical imaging services, is using the funding to launch its Medical Intelligence Lab - a generative AI model trained by doctors to provide personalized health insights from users' medical data.
Function Health just made healthcare AI personal in a way that could reshape how millions of Americans think about their medical data. The company's $298 million Series B round, led by Redpoint Ventures at a $2.5 billion valuation, comes alongside the launch of Medical Intelligence Lab - an ambitious AI platform that promises to turn your scattered health information into actionable insights.
The funding round reads like a who's who of Silicon Valley and beyond. Andreessen Horowitz joined the round, along with NBA stars Blake Griffin and Allen Crabbe, Battery Ventures, and Roku founder Anthony Wood. The $298 million brings Function's total raised to $350 million, reflecting the massive appetite for healthcare AI solutions that can actually deliver on their promises.
"It's not good enough to be in a world where AI exists and not be applying it to your health," CEO Jonathan Swerdlin told TechCrunch. "You should be able to manage your biology. The objective of Function Health is to apply the best available technology to human health."
Here's what makes Function different from the flood of wellness apps and AI health coaches: the company has processed over 50 million lab tests since 2023 across 75 physical locations in the U.S., with plans to nearly triple that footprint to 200 locations by year-end. That's real medical data from real patients, not just fitness tracker metrics.
The Medical Intelligence Lab represents Function's biggest bet yet. Unlike generic health chatbots, this AI model is trained directly by doctors and can analyze your complete medical history - lab results, doctor's notes, medical imaging, even data from wearable devices. The platform meets HIPAA standards and encrypts all user data, addressing the privacy concerns that have plagued other health AI startups.
"Your data and your identity are never for sale," Swerdlin emphasized in the TechCrunch interview. "Every bit of your information is fully encrypted and protected."