Boston-based StripSupply raised a seed round that will enable the glucose testing company to move forward to make diabetic testing affordable for everyone, disrupting the $11 billion diabetic test strip market. LaunchByte Ventures led the seed round comprised of a syndicate of serial entrepreneurs, physicians, and angel investors. The investor group supports StripSupply’s subscription based model that will provide FDA-approved glucose test strips to consumers for 85% less than major retail pharmacies.
Approximately 30 million people in the U.S. have diabetes and the ADA estimates that the annual direct medical expenditures for a person with diabetes can reach up to $7,900 annually. Of this StripSupply is targeting the approximate 9 million diabetics who pay out-of-pocket for testing supplies—as a result of being uninsured or having health insurance with high deductibles.
"All of the innovation made in the diabetic testing space has been focused on making glucose meters more "connected," but very little innovation has occurred around patient accessibility," said Tan Kabra, founder and Managing Director of LaunchByte Ventures. "StripSupply has a huge opportunity to disrupt a massive market that hasn't advanced much in 30 years and, at the same time, save lives."
The thrust of StripSupply’s marketing strategy is to make consumers aware that that the FDA holds all glucose meters and test strips to the same standards of accuracy. Without needing the big budget of Pharma companies, StripSupply is able to provide consumers with equivalent accuracy at a fraction of the cost.
"The retail price for diabetic test strips at major pharmacies can be more than $100 for a 50-count vial. However, the manufacturing cost doesn't typically exceed 15 cents per strip," said Jay Hastings, CEO and Founder of StripSupply in a press statement. "That's $600 a month for a person with diabetes that needs to test their glucose levels 9-10 times a day in order to stay healthy and avoid serious complications like blindness, amputation, or death."