Babson Diagnostics Raises $31 Million in Series B Funding to Drive Retailization of Customer-First, Convenient, and Highly Accessible Diagnostic Blood Testing
June 29, 2021
Austin, Texas - Babson Diagnostics, a transformative medical technology company improving customer access to diagnostic blood testing, today announced the closing of $31 million in an oversubscribed Series B funding round, led by Emerald Development Managers, with full participation by existing investors Siemens Healthineers, Prism Ventures, and Lago Consulting Group.
The Series B fundraise will accelerate the commercialization of Babson’s disruptive technology that will make routine blood testing easier, more accessible, and less invasive. Originally incubated at Siemens Healthineers and using an innovative collection device developed in collaboration with BD (Becton, Dickinson and Company), Babson’s technological ecosystem reimagines the entire diagnostic blood testing process. Innovations in collection, sample handling, and analysis enable Babson to use small capillary samples, with only one-tenth the volume typically collected with venipuncture, to produce a full range of diagnostic test results without sacrificing quality, accuracy, or cost.
Babson plans to deploy its proprietary diagnostics ecosystem at pharmacies and other convenient retail locations throughout the country, creating an experience that places customers first and addresses their expectations for convenient, accessible, and affordable healthcare. By reducing common barriers to diagnostic blood testing — such as inconvenience, cost, and aversion to venipuncture — Babson aims to increase access to necessary preventive care and improve public health outcomes.
Funding Builds Off Recent Momentum
The financing follows several recent accomplishments in Babson’s development, including the completion of a pivotal clinical study in a retail pharmacy setting that demonstrated the accuracy of its novel technology compared with conventional blood testing. Subsequent research included a preference study that confirmed with compelling data that customers will prefer Babson’s new technology at a pharmacy over the traditional venous draw at a patient service center. In March of this year, Babson also was named one of Fierce Medtech’s elite “Fierce 15”, recognizing it as one of the most promising private companies in the medical technology industry.
“The new round of funding demonstrates confidence in our strategic partnerships, our technologies, and our science-first approach to diagnostic blood testing that will improve the customer experience and remove barriers to accessing care,” said David Stein, Ph.D., Babson’s chief executive officer. “Babson’s unique diagnostics ecosystem will enable mainstream adoption of diagnostic blood testing using microsamples easily collected at highly accessible and convenient locations. The additional capital will enable us to further scale the company and our disruptive solutions for regulatory approval, commercial launch, and nationwide rollout.”
Babson intends to use the Series B funding to rapidly expand its laboratory and ecosystem infrastructure, finalize its blood testing solution development, and grow its sales and marketing teams. Neil Cohen, founder and chairman of Emerald Development Managers, will join the company’s board of directors.
“Babson has strong support from two of the most innovative medical technology companies in the world and is led by a team with a proven track record of driving healthcare efficiency and bringing new care models and disruptive solutions to market,” Cohen said. “Based on the company’s tremendous science and proprietary technology, coupled with its progress in the past year, we are confident in Babson’s compelling business model and are excited about its future.”
About Babson Diagnostics
Babson Diagnostics is a healthcare technology company focused on moving laboratory testing to the pharmacy counter. Babson has developed a model for diagnostic blood testing that maintains a high standard of accuracy, yet requires only one-tenth the sample size of traditional venipuncture methods.