DayTwo said Monday it raised $37 million to continue the development of technologies to improve the health of people with diabetes and other metabolic diseases.
The funds raised will be used for the company’s first product, which is already helping over 70,000 users in Israel and the US, based on research and technology that was developed at the Weizmann Institute by Professors Eran Segal and Eran Elinav. The solution uses artificial intelligence (AI), the sequencing of the gut microbiome and other clinical measures to create precision nutrition-based food prescriptions to balance blood sugar levels after meals.
“In the coming decade, the digital health tech industry will be a global engine of growth at least as powerful as the cyber industry in the previous decade, and no less important, we are privileged to see the direct link between the work of the development department and its impact on people’s health,” said Adi Lev, DayTwo’s deputy CEO for R & D. “When a patient in Michigan reported this week that she had canceled complex bariatric surgery, or when another person with diabetes stops using medications to regulate his condition because he is better managing his blood sugar levels through better daily food choices, it gives a sense of meaning and real added value to what we do. Moreover, DayTwo has the largest microbiome database in the world containing medical, nutritional, behavioral data and deep genetic sequencing of the intestinal bacteria of tens of thousands of people. The capital raised will fund the continuation of the research into the links between the bacteria in our bodies and other diseases, and the development of new algorithms, in order to provide new scientific discoveries that will have proven clinical outcomes.”
The current round of funding comes after the company demonstrated significant clinical impact on participants in the DayTwo program in the US including decreased blood sugar levels and a significant decrease in prescription medication costs, the company said. As a result, DayTwo is working with large employers and health plans in the US market. In the Israeli market, the company is collaborating with Clalit Health Services, which provides DayTwo’s solution to its members, and the company expects to launch a similar collaboration with Maccabi Health Services.
“Over the past year, we have devoted most of our efforts and focus to the US market. It is very important to show the clinical impact and improved health of users, as well as savings in healthcare costs,” said Lihi Segal, CEO and founder of DayTwo. “Our solution leads to a significant and rapid reduction in healthcare costs due to a reduction in prescription medication, fewer visits to the doctor, fewer complex surgical procedures with accompanying complications in the case of diabetes and metabolic diseases. We will continue to invest resources, expand our development center in Israel, and bring in expert developers in order to intensify our research on intestinal bacteria and develop additional solutions with real clinical impact.”
This round raises the capital invested in the company to $85 million. DayTwo’s existing investors – including aMoon of Marius Nacht and Dr. Yair Schindel, 10D of Yahal Zilka, and Cathay Innovation Ventures – participated and were joined by new investors, including Poalim Capital Markets, La’maison Fund and Micron Ventures.