Reflections on Function Health’s Fundraise - and What it Signals for the Future of Health

Last week, our portfolio company Function Health announced a $298M Series B fundraise led by Redpoint Ventures, bringing the company to a $2.5B valuation. It’s a remarkable milestone - not just for Function, but for preventative healthcare at large. And for Cade, it represents something deeper: a vivid validation of the thesis that guided our very first investment.

When We Invested: A Bet on a Different Future of Healthcare

When Cade launched Fund I back in early 2024, Function Health was our first investment - before we had a website, a CRM, or an office. What we did have was conviction: that the next decade of healthcare would be defined not by care sites or reimbursement codes, but by intelligence layers, continuous data, and consumers demanding deeper visibility into their own health.

Function’s wedge at the time was comprehensive blood testing - already a massive unlock versus traditional primary care, with over 100 biomarkers and actionable insights delivered through clinician + AI workflows. Even then, we saw a team building far beyond a testing service.

We saw early signs of a platform designed to surface root causes, personalize care at scale, and give individuals agency over longevity and disease prevention. That was the future we were betting on.

Today: The Intelligence Layer for Human Health Is Taking Shape

Nearly two years later, that early vision has expanded into something far bigger.

The acquisition of Ezra brought full-body imaging and AI-powered cancer detection into the platform, merging two of the fastest-growing trends in preventive health: multi-modal diagnostics and proactive risk identification. 

Now, with the launch of their Medical Intelligence Lab that integrates labs, imaging, wearables, IoT data, and medical records, Function is finally building the “medical intelligence layer” of the future. By unifying signals that have historically been fragmented across systems, early detection becomes continuous detection, insights become protocols, and data becomes action.

Lowering its membership price to $365 makes this level of precision and intelligence accessible to far more people, accelerating a shift from reactive care to proactive health management.

For Cade, watching this platform evolve from blood testing to multimodal diagnostics to integrated medical intelligence underscores exactly why we invest in founders who build systems, not features.

A Fast-Moving Category, A Clear Early Leader

Since our investment, the entire category has accelerated. Nearly every major telehealth or consumer health company is expanding into biomarkers, multi-modal diagnostics, or AI-driven interpretation. Consumers want visibility; clinicians want support; regulators are finally clearing a path for earlier detection and personalized risk stratification. 

Amid this acceleration, Function is distinguishing itself not by breadth alone, but by coherence - the ability to unify modalities, translate them into clear actions, and continuously learn from outcome - all with an intuitive and trustworthy consumer experience.

For Cade, this validates the core of our thesis: The most transformative health companies will operate not as care providers, but as intelligence platforms - augmenting clinicians, empowering consumers, and identifying risk years before symptoms appear.

Function’s Series B marks more than a financing milestone; it marks the arrival of the intelligence layer, the direction we believe the entire sector is moving.

What This Means for Cade

Seeing this vision play out with Function Health reinforces several beliefs that have and will continue to shape Cade’s investments:

1. Testing is the wedge - but intelligence is the category.

The companies that endure will move from diagnostics → integration → insight → action; Closing the feedback loop is critical. 

2. Consumers will drive the shift to preventative health.

Function’s growth reflects a generational change in health expectations. Demand for early detection, transparent data, and personalized health guidance is reshaping the category faster than institutions can follow. 

3. Multimodal AI is the future of clinical decision support.

Function’s MI Lab is an early example of where we believe more of our future bets will land: unifying labs, imaging, wearables, behavioral signals, and research into a continuous understanding of the human body.

4. UX is clinical - and a durable moat in consumer health.

Engagement is the difference between early detection and missed warning signs. Companies that win will be those that turn complexity into clarity and make long-term health engagement delightful, not daunting.

5. Speed matters - and favors founders with bold, category-defining visions.

Function’s trajectory underscores why we back teams that ship fast, learn fast, and build ambitiously. In rapidly evolving categories, early conviction compounds. 

Looking Ahead

We could not be prouder of Jonathan, Dr. Hyman, Pranitha, Seth, and the entire Function team. We’re grateful to be part of this journey, and more energized than ever to back founders building the next wave of healthcare companies - companies with bold category intent, rapid execution, multimodal intelligence foundations, and an unwavering commitment to empowering people to live fuller, healthier lives.

Because the future of health isn’t reactive or episodic; It’s continuous, intelligent, and deeply personal - and Function is helping show the world exactly what that future looks like.