Dreem Health Secures $29M to Revolutionize Sleep Care with AI and Digital Solutions

The Sunrise Group, a leader in sleep health technology, has raised $29 million to expand its recently acquired digital sleep clinic, Dreem Health. This significant investment aims to address the growing concern of sleep disorders and their associated health risks, while leveraging artificial intelligence to enhance sleep medicine.

Addressing America's Sleep Crisis

Recent data from Dreem Health's 2025 State of Sleep survey, conducted by the Wakefield Research Group, reveals a troubling trend: only 7% of Americans report feeling well-rested every day upon waking. The survey identified stress and anxiety, environmental factors, and snoring or breathing difficulties as the primary disruptors of sleep.

Laurent Martinot, co-founder and CEO of the Sunrise Group, emphasized the widespread nature of sleep issues, stating, "The majority of Americans suffer from a lack of sleep." He further highlighted the connection between poor sleep and various co-morbidities, including obesity, hypertension, and depression.

Innovative Technology and Expansion Plans

The Sunrise Group's journey in sleep health began in 2015 with the development of an FDA-cleared mandibular sensor for at-home diagnosis of sleep apnea. The acquisition of Dreem Health in 2024 marked a significant step towards providing end-to-end sleep care for patients.

With the new funding, led by Eurazeo and supported by notable investors such as Amazon's Alexa Fund, the company plans to:

1. Expand Dreem Health's offerings nationwide
2. Recruit more providers to the platform
3. Develop an AI co-pilot for sleep medicine to assist providers during and between consultations

The AI co-pilot aims to provide real-time documentation and decision support, building on the company's existing use of AI for care coordination, message triage, call handling, and billing.

Addressing Key Challenges in Sleep Medicine

The Sunrise Group's approach tackles two critical issues in sleep health: the scarcity of sleep specialists and the challenges associated with traditional sleep studies.

To improve the accuracy and comfort of at-home sleep studies, the company has developed a lightweight device designed for multiple-night wear. This innovation is particularly significant given that close to a billion people worldwide have sleep apnea, with approximately 80% of cases going undiagnosed.

Martinot explained the shift towards in-house AI development: "To make the best of that information, we feel building this thing to be the way forward." This strategy allows the company to leverage the full context of patient data, from initial contact through their entire sleep health journey.

As the Sunrise Group continues to expand its digital sleep clinic capabilities, the integration of AI and innovative diagnostic tools promises to reshape the landscape of sleep medicine, potentially improving outcomes for millions of sleep-deprived individuals worldwide.