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PranaQ, a health tech startup specializing in sleep medicine, has announced the close of a $3 million Pre-A funding round. The round was led by Acorn Pacific Ventures, with continued support from existing investor Smilegate Investment of Korea, and strategic participation from DelightRoom, the developer behind the global hit alarm app Alarmy, which has been downloaded 80 million times worldwide.
PranaQ is transforming the way sleep disorders are monitored. The company’s wearable medical device and software, powered by AI-driven biosignal processing algorithms, can accurately detect sleep disorders such as sleep apnea.
In February 2025, PranaQ received FDA clearance in the United States and began shipping its product in April. This latest round of funding is intended to accelerate PranaQ’s expansion into the US market.
According to PranaQ co-founder and CEO Jerry Chen, since shipments began in April, roughly 200 clinics across the US have adopted the system, generating data from over 2,000 users so far.
PranaQ’s main focus is sleep apnea, a common disorder in which breathing repeatedly stops or becomes shallow during sleep. Because it only occurs during sleep, most people have no idea they are affected. Sleep apnea can lead to daytime fatigue and drowsiness, and in severe cases, it increases the risk of heart disease, high blood pressure, and even sudden death during sleep.
Traditionally, testing for sleep apnea in the US requires patients to spend a night at a sleep center, often paying out of pocket to be connected to various monitoring devices. Diagnoses are made using EEGs, ECGs, and other complex tests, making the process costly and inefficient.
PranaQ’s solution shrinks the process to a simple fingertip sensor. Their proprietary physiological signal algorithms and AI deliver results as accurate as traditional methods, but in a much more convenient and accessible way. “Doctors are ultimately responsible for their patients, so AI analysis must move from simple correlation to true causation—meaning it must be explainable,” Jerry Chen says. This principle is at the heart of PranaQ and solves the problem of inconvenience for both doctors and patients.
On the business side, PranaQ’s system is now covered by health insurance, lowering the financial barrier for patients. Clinics that adopt PranaQ pay an upfront hardware fee plus a software subscription or usage-based fee, making revenue streams more predictable.
The next big step for PranaQ is to reach even more clinics. “We don’t do traditional field sales, because that’s too inefficient for startups,” he says. Instead, PranaQ partners with key opinion leaders among physicians as seed users, leveraging their digital content to reach new doctors. This approach has resulted in a conversion rate of nearly 50 percent.
Chen adds that seamless workflow integration is essential for adoption. “For a doctor, having to use ten different systems to solve ten different problems is a disaster. Non-disruptive integration is the key.” For example, if a patient’s five days of home data are all invalid, the doctor typically wouldn’t know until the next appointment, wasting time. PranaQ’s system allows doctors to check daily data quality in real time and intervene immediately if problems arise. “This may not improve diagnostic accuracy directly, but it is hugely valuable for clinicians,” Chen notes.
DelightRoom’s strategic investment is also a significant step toward broader market reach. The investment was finalized in late 2024. DelightRoom’s Alarmy app, with 80 million users, is especially popular with people who struggle with shallow sleep—making them a natural target audience for PranaQ.
“It's a natural fit,” says Chen. Until now, Alarmy could only alert users that they didn’t sleep well. With integration, if Alarmy detects signs of high sleep risk, it can now recommend a medical consultation and refer users to clinics using PranaQ’s technology. This solves PranaQ’s customer acquisition cost challenge and transforms Alarmy from a simple app into a true gateway to health care services.
“Our goal over the next 12 to 18 months is to become a top-tier provider in the sleep diagnostics market,” states Chen. While there are many sleep-related startups on the market, PranaQ’s position is closer to high-barrier medical applications, and the company has found the sweet spot between market demand, technology, cost, and product usability.
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