Each year more than 14 billion lab tests are ordered and approximately 70 percent of medical decisions depend on these lab test results, according to the Centers for Disease Control (CDC). Although getting lab work is important, it can be time-consuming and expensive. An Austin-based healthtech startup aims to change that by making diagnostic blood testing easier, faster and more convenient without compromising on quality or accuracy.
Founded in 2017, Babson Diagnostics collects small fingertip samples one-tenth the volume of traditional venipuncture and uses proprietary technology to produce a full range of accurate diagnostic results, according to the company. Lab results are sent to the patient’s doctor the same day or the next day.
“Babson’s unique diagnostics ecosystem will enable mainstream adoption of diagnostic blood testing using microsamples easily collected at highly accessible and convenient locations,” Dr. David Stein, Babson’s CEO, said in a statement.
On Tuesday, Babson announced it raised a $31 million Series B round. The funding will be used for regulatory approval, commercial launch and a nationwide rollout at pharmacies and other retail locations. Funds will also be used to “rapidly expand” Babson’s lab and ecosystem infrastructure and grow the company’s sales and marketing teams, according to a news release.
Babson raised a $13.7 million Series A round last September. Then in January, the startup completed a clinical study in retail pharmacies, inching its way closer to commercializing diagnostic blood testing.
“The complex world of blood testing has resisted historical disruption efforts based on single-technology point solutions,” Eric Olson, Babson’s founder, COO and chairman, said in a statement. “We have developed novel technologies across sample collection, sample handling, sample analysis, software and AI to build a scalable and sustainable value chain for the next generation of blood testing.”
The Series B round was led by Emerald Development Managers with participation from Lago Consulting Group, Siemens Healthineers and Prism Ventures. In addition to the funding, founder and chairman of Emerald Development Managers Neil Cohen will join Babson’s board of directors.