The Weekly Notable Startup Funding Report: 1/20/25 – AlleyWatch

Function Health’s Acquisition of Ezra Changes Preventive Care with AI – AlleyWatch


Function Health, the personal health platform known for democratizing lab testing, has acquired Ezra, an AI-powered medical imaging startup, in a strategic move that could transform preventive healthcare. Financial terms of the transaction were not disclosed, but the acquisition combines two complementary technologies focused on making advanced diagnostic services more affordable and accessible. “I started Ezra with a clear mission: to detect cancer early for everyone in the world,” remarked Emi Gal, founder of Ezra. “This mission is deeply personal for me—if my mother had detected cancer early, she would still be alive today. Over the past six years my team and I have helped countless people find cancer, many of whom are now cancer free. We are now scaling this to millions together with Function.”

I started Ezra with a clear mission: to detect cancer early for everyone in the world. This mission is deeply personal for me—if my mother had detected cancer early, she would still be alive today. Over the past six years my team and I have helped countless people find cancer, many of whom are now cancer free. We are now scaling this to millions together with Function. – Emi Gal

The acquisition marks a dramatic shift in the preventive imaging landscape. Founded by Diego Cantor and Emi Gal in 2018, Ezra had established itself as an innovator in healthcare imaging, raising $43M from a notable roster of investors including Alumni Ventures, Gaingels, FirstMark, Accomplice, Credo Ventures, Esther Dyson, Anne Wojcicki, Dave McClure, and over two dozen other prominent backers. The startup’s breakthrough came with its FDA-cleared AI technology that significantly reduces full-body MRI scan times while maintaining diagnostic quality.

The deal’s most immediate impact will be felt by consumers, who will see full-body MRI scan prices drop from the industry standard of $1,500 to just $499, while scan duration decreases from 60 minutes to 22 minutes. This price disruption could fundamentally alter the economics of preventive imaging, potentially making annual full-body scans a realistic option for millions of Americans who previously couldn’t afford such services.

“Adding imaging was part of our vision from day one,” explained Jonathan Swerdlin, Cofounder and CEO of Function Health, in an interview following the announcement. “Our brilliant team first focused on making comprehensive lab testing affordable and widely available. Now with Ezra becoming a part of Function, we complete the picture. It’s time everyone owns their health, every year. This is the best use of AI—applying it directly to human life.”

Adding imaging was part of our vision from day one. Our brilliant team first focused on making comprehensive lab testing affordable and widely available. Now with Ezra becoming a part of Function, we complete the picture. It’s time everyone owns their health, every year. This is the best use of AI—applying it directly to human life. – Jonathan Swerdlin

The timing of the acquisition aligns with growing consumer interest in proactive healthcare management. Function Health has spent years building a nationwide network for accessible lab testing, currently available at 2,200 Quest Diagnostics locations. The company now plans a rapid rollout of Ezra’s imaging technology, with services immediately available at nearly 100 locations across the US and ambitious plans to expand to over 1,000 locations within months.

Healthcare industry experts note that this combination of extensive lab testing and advanced imaging creates a powerful longitudinal dataset that could accelerate AI-based predictive healthcare. Dr. Mark Hyman, Function’s Chief Medical Officer, described the approach as “the most powerful I’ve seen in my entire career,” suggesting that combining annual lab work with full-body imaging could fundamentally transform early disease detection.

The acquisition represents the latest in a series of healthcare technology mergers aimed at making advanced preventive care more widely accessible through AI-powered solutions, positioning Function Health as a potential leader in this rapidly evolving space.



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