Full-body scan startup Neko Health raises $260 million
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Neko Health, a full-body scan startup co-founded by Spotify's Daniel Ek, has raised $260 million in Series B funding that values it at $1.8 billion, a source familiar has confirmed.
Why it matters: Full-body scan startups have spurred debate, particularly on cost, which Neko intends to address.
How it works: Launched in 2023, Neko scans take 50 minutes, says CEO and co-founder Hjalmar Nilsonne.
- A scan in the U.K., Neko's largest market, currently costs £299 and uses a mix of thermal cameras, 3D cameras, ECG, lasers, and finger sensors to detect conditions like heart disease, skin cancer, or Type 2 diabetes.
- Ezra and Prenuvo, two competitors, focus on MRI scans and can cost upward of $1,000.
Lightspeed Venture Partners led the round, with participation from General Catalyst, O.G. Venture Partners, Rosello, Lakestar and Atomico. The company would not confirm the valuation.
Between the lines: Much of its tech already exists on the market. Neko differentiates by combining it all together in one product, and building a way to automate some of the existing primary care check-ups that are currently performed manually.
- "Neko is not about inventing a sensor from NASA that we've never seen before," he says. "Is about how we can bring all the best tech into one sensor."
- These scans are then followed up by doctor's visits at Neko's clinics. Those repeat check-ups enable Neko to quantitatively track changes over time.
- It has some 10,000 customers today, he says, declining to comment on the company's valuation.
What we're watching: Neko, which plans to launch in the U.S., is awaiting approval from both the FDA and from the states in which it plans to operate.
- Many existing, preventative full-body scans backed by venture capitalists aren't covered by insurance. There's evidence to suggest that will be true of Neko, too, as it's completely out-of-pocket in Europe.
The big picture: Full-body scan startups aiming to detect early-signs of cancer or chronic conditions have soared in popularity among venture capitalists and received celebrity endorsements. But critics have questioned the technology both on cost and on its effectiveness.
- With additional capital, however, such startups have more time to try and prove their critics wrong on both those fronts.
- "Our goal is to make Neko even more affordable over time, so we'll look at all possible options," said Nilsonne on the possibility of lowering the price further.
Our thought bubble, via Axios' Claire Rychlewski: Full-body scans require broad provider buy-in and that remains a significant obstacle, regardless of cost, because they're not recommended by professional medical organizations like the American College of Radiology.
- Plus, doctors argue the scans can cause "undue anxiety."
One fun thing: This is Ek's second unicorn.
