Digital Sleep Clinic Dreem Health Raises $29M For End-To-End Sleep Care

The Sunrise Group has secured $29 million to scale Dreem Health, its recently acquired digital sleep clinic. Founded in 2015, the company initially developed an FDA-cleared mandibular sensor for at-home diagnosis of sleep apnea. Its acquisition of Dreem Health last year marked a strategic shift toward offering comprehensive, end-to-end sleep care.

Laurent Martinot, co-founder and CEO of the Sunrise Group, noted that most Americans struggle with inadequate sleep, which is linked to conditions such as obesity, hypertension, and depression. Findings from Dreem Health’s 2025 State of Sleep survey, conducted with the Wakefield Research Group, highlight the scale of the issue: only 7% of Americans report waking up well-rested each day. Stress and anxiety are the leading causes of disrupted sleep, followed by environmental factors and breathing difficulties such as snoring. The latest funding round was led by Eurazeo, with participation from Amazon’s Alexa Fund, WE International, Kurma Partners, Vives Fund, Majycc, Namur Invest, Seventure Partners, Investsud, Sambrinvest, Noshaq, IMBC, and Invest.bw.

With this new capital, Sunrise aims to expand Dreem Health’s services nationwide and attract more providers to its platform. Looking ahead, the company plans to develop an AI co-pilot for sleep medicine that can support clinicians during and between consultations, assisting with real-time documentation and clinical decision-making. AI already underpins Dreem Health’s care coordination, message triage, call handling, and billing processes, and Martinot emphasized the shift toward building these capabilities internally rather than relying on third-party solutions. “We realized that to truly understand the full context of a patient’s sleep over time, and its relationship to other diseases, we need to own the development of these tools ourselves,” he said.

The Sunrise Group is tackling two major challenges in sleep medicine: the shortage of sleep specialists and the burdensome process of sleep studies. Traditional in-clinic sleep studies are often accurate but inconvenient, with long wait times and significant patient burden. At-home studies, while more accessible, have historically lacked accuracy due to limited diagnostic tools. To bridge this gap, the company created a lightweight, comfortable device designed to test for sleep apnea across multiple nights, improving both usability and accuracy.

Sleep apnea affects nearly one billion people worldwide, with about 80% of cases remaining undiagnosed. Sunrise’s approach combines improved diagnostic devices with digital access to sleep specialists, offering patients online consultations after their studies are complete. By expanding Dreem Health and investing in AI-driven care, the Sunrise Group aims to make sleep medicine more accurate, accessible, and patient-centered.