Access to sleep medicine is a worldwide problem, with about 80% of people with sleep apnea remaining undiagnosed. Several startups are using AI to try and address this issue — and on Wednesday, one of these companies announced that it had raised $20 million to advance its suite of sleep technology.

Madison, Wisconsin-based EnsoData’s Series B funding round was led by Questa Capital. The round takes the company’s total funding to date to “just over” $50 million, according to CEO Justin Mortara.

EnsoData, founded in 2015, uses AI to analyze sleep study data from polysomnography studies or home sleep apnea tests. The platform studies patients’ sleep stages and respiratory events to quickly detect events like apneas, hypopneas and arousals.

This technology, which integrates into providers’ existing workflows, helps clinicians diagnose sleep disorders faster and more consistently, Mortara explained.

“EnsoData’s technology saves clinicians time and enables private sleep labs and healthcare systems to provide patients with fast and accurate diagnoses, treatment and results — while also generating more revenue by reducing the amount of time clinicians spend analyzing data by nearly 70%,” he declared.

Traditionally, sleep technicians review sleep studies manually, which can take a couple hours per study and can vary by scorer. EnsoData’s AI platform automates this process and generates sleep reports within minutes, allowing clinicians to spend less time scoring and more time interpreting results and caring for patients.

Operating on a SaaS business model, EnsoData charges on a per patient basis, rather than a per test basis like most device manufacturers in sleep medicine, Mortara stated.

He said that his company has a variety of competitors in the sleep apnea diagnostic space — all of which are primarily hardware developers rather than software solutions, including companies like Zoll and SleepImage.

EnsoData differentiates itself by selling software as a medical devices (SaMDs), he pointed out.

“The FDA cleared solutions are compatible with all leading devices, meaning interoperability is a clear differentiator,” Mortara remarked.

EnsoData’s SaaS model is also more scalable, as the company charges under $25 per patient, he added.

Across all its solutions, EnsoData serves more than 125 customers and is supporting more than 75,000 patients each month. Its target customers are providers in the sleep medicine space, particularly sleep centers within health systems, private sleep clinics, sleep management organizations and independent diagnostic testing facilities, Mortara said.

The company has completed case studies with health systems including CommonSpirit Health, Northwell Health, Rush University Health System and Sanford Health.

Photo: franckreporter, Getty Images

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