From Groupon to Genomes: Eric Lefkofsky’s Data-Driven Leap into Healthcare

Eric Lefkofsky is a prominent American entrepreneur known for founding Tempus AI. He earned his bachelor’s degree from the University of Michigan in 1991 and completed his Juris Doctor at the University of Michigan Law School in 1993.

After law school, Lefkofsky co-founded several companies. In 1999, he and his college friend Brad Keywell started Starbelly, an internet company specializing in promotional products. They sold Starbelly to Halo Industries in January 2000, where Lefkofsky served as Chief Operating Officer.

Lefkofsky’s career is marked by a series of successful entrepreneurial endeavors. In addition to Tempus, Lefkofsky co-founded several impactful companies:

• Groupon (NASDAQ: GRPN): A global e-commerce marketplace that redefined online deals and consumer engagement.
• Echo Global Logistics (NASDAQ: ECHO): A technology-driven transportation and logistics outsourcing firm.
• InnerWorkings (NASDAQ: INWK): A managed print and promotional solutions provider.
• Mediaocean: A leading platform for media procurement and advertising technology.
• Lightbank: A venture capital firm focused on investing in disruptive technology​

Lefkofsky and his wife Liz co-chair the Lefkofsky Family Foundation, a private charitable organization founded in 2006. The foundation seeks to enhance communities through initiatives in education, healthcare, human rights, and the arts. Lefkofsky’s philosophy centers on harnessing technology to transform traditional industries. 

Bytes and Breaths: How AI is Breathing Life into Life Sciences

The integration of artificial intelligence (AI) into the life sciences sector is transforming healthcare by enhancing diagnostics, personalizing treatments, and expediting drug discovery. In 2024, the AI in life sciences market is valued at approximately USD 2.88 billion and is projected to reach USD 8.88 billion by 2029, growing at a compound annual growth rate (CAGR) of 25.23%. (Mordor Intelligence)

This rapid growth is driven by AI’s ability to analyze extensive biomedical data, leading to more efficient and accurate healthcare solutions. AI applications in life sciences include medical imaging analysis, genomics, drug development, clinical decision support, and patient monitoring. These technologies enable the development of new therapies and improve patient outcomes.

The COVID-19 pandemic has further accelerated AI adoption in healthcare, prompting organizations to innovate in response to challenges such as supply chain disruptions and financial pressures. Investments in AI have allowed healthcare providers to rethink care delivery and financing, stimulating growth in the life sciences sector.

Regionally, North America leads the AI in life sciences market, supported by substantial investments in research and development by pharmaceutical companies. The competitive landscape is characterized by strategic collaborations and acquisitions aimed at enhancing AI capabilities and expanding market reach. Major players focus on leveraging AI to optimize drug discovery and development processes, with significant partnerships and investments in AI-driven platforms. (Mordor Intelligence)

Despite the promise of AI in life sciences, challenges remain, including data privacy concerns, regulatory compliance, and a shortage of skilled professionals. However, as technology advances and more relevant data becomes available, AI is expected to play an increasingly pivotal role in healthcare, leading to more effective treatments and better patient outcomes. (Market.us)

Tempus Ticks All the Boxes: Data, Decisions, and a Dose of Innovation

Tempus AI is a health technology company that leverages artificial intelligence to advance precision medicine. The company’s mission is to harness technology, data, and AI to enhance precision medicine, enabling physicians and drug developers to better match therapies to patients.

The company addresses several critical challenges in healthcare:

• Data Fragmentation: Medical data often exists in isolated silos, making it difficult for healthcare providers to access comprehensive patient information.
• Treatment Personalization: Standard treatments may not be effective for all patients due to individual genetic and molecular differences.
• Clinical Trial Matching: Identifying suitable clinical trials for patients can be time-consuming and inefficient.

Tempus AI tackles these issues by aggregating and analyzing vast amounts of clinical and molecular data. This approach provides actionable insights that support personalized treatment plans and efficient clinical trial matching.

The company’s business model includes:

• Diagnostic Testing Services: Offering genomic tests that physicians can order to inform treatment decisions.
• Data Licensing: Providing de-identified data to pharmaceutical and biotechnology companies for research and development purposes.
• Clinical Trial Services: Assisting in matching patients to appropriate clinical trials, thereby facilitating research and offering patients access to new therapies.

Tools of the Trade: Tempus’ Medical Magic Kit

Tempus AI offers a comprehensive suite of products and solutions designed to advance precision medicine through artificial intelligence and data analytics. These offerings cater to healthcare providers, researchers, and patients, facilitating personalized care and informed decision-making.

1. Genomic Sequencing Services

Tempus provides a range of genomic profiling services to support data-driven patient care:

• xT: A 648-gene DNA sequencing panel applicable to various cancers, including hematologic malignancies.
• xR: A whole-transcriptome RNA sequencing panel offering comprehensive gene expression analysis.
• xF/xF+: Circulating tumor DNA (ctDNA) sequencing panels analyzing 105 or 523 genes, respectively, for non-invasive cancer profiling.
• xG/xG+: Gene panels assessing 52 or 88 genes associated with hereditary cancers, aiding in genetic risk evaluation.
• xE: Whole exome sequencing covering over 19,000 genes, providing an extensive genetic overview.

These services enable clinicians to tailor treatments based on individual genetic profiles, enhancing the effectiveness of therapeutic interventions.

2. Tempus Hub

Tempus Hub is an AI-enabled platform that offers healthcare providers secure access to comprehensive patient insights:

• Patient Similarities: Allows physicians to identify and review de-identified reports of patients with similar profiles, facilitating informed treatment decisions.
• Consults: A peer-to-peer messaging tool enabling clinicians to collaborate across institutions on complex cases, with instant de-identification to protect patient privacy.
• Refresh: Provides updated therapy options and clinical trial information based on the latest data, ensuring treatment plans remain current.
• Tempus One Updates: Features a “Concierge” service offering direct support from Tempus team members for administrative tasks, enhancing user experience.

Accessible via mobile and desktop, Tempus Hub integrates seamlessly into clinical workflows, promoting efficient and personalized patient care.

3. Tempus Lens

Tempus Lens is a data analytics platform designed to accelerate research through AI-driven insights:

• Tempus One Integration: Incorporates an AI-enabled assistant utilizing generative AI to facilitate data analysis, cohort building, and patient population studies.
• User Q&A: Features an in-app chat assistant powered by large language models (LLMs), providing real-time answers with citations and links for further information.
• Cohort Building: Employs LLMs to swiftly identify and analyze patient cohorts across numerous clinical and molecular attributes within Tempus’ dataset.

By leveraging Tempus’ extensive multimodal data library, Lens empowers researchers to derive actionable insights, advancing scientific discovery and therapeutic development.

4. Tempus Next

Tempus Next is an AI-enabled care pathway intelligence platform aimed at enhancing clinical decision-making:

• Care Gap Identification: Utilizes AI to detect deviations from care guidelines, providing actionable insights at the point of care.
• EMR Integration: Seamlessly integrates with Electronic Medical Records to analyze diverse data, including clinical notes, molecular information, and imaging.
• Regular Updates: Delivers continuous updates to health systems, ensuring adherence to the latest care standards and effective patient outcome tracking.

Tempus Next supports the adoption of precision medicine by ensuring patients receive evidence-based, personalized treatments.

5. AI-Enabled Smart Tests

Tempus has developed AI-enabled laboratory tests, known as smart tests, that embed real-world evidence to provide actionable insights:

• Real-Time Data Integration: Combines patient-specific clinical, molecular, and imaging data to enhance the intelligence of lab results.
• Personalized Treatment Recommendations: Offers tailored therapy options based on comprehensive data analysis, improving patient outcomes.

These smart tests exemplify Tempus’ commitment to integrating AI into diagnostics, transforming laboratory results into insightful tools for personalized care.

6. Tempus ECG-AF

Tempus ECG-AF is an AI-based algorithm designed to identify patients at increased risk of atrial fibrillation (AF):

• FDA 510(k) Clearance: Received clearance from the U.S. Food and Drug Administration, validating its clinical utility.
• Early Detection: Facilitates prompt identification of AF risk, enabling timely intervention and management.

This tool underscores Tempus’ expansion into cardiology, applying AI to improve cardiovascular health outcomes.

AI on the Case: Tempus Diagnoses the Future of Medicine

Tempus AI integrates advanced technology and innovative approaches to revolutionize precision medicine. By combining artificial intelligence with extensive multimodal data, Tempus provides personalized treatment insights and accelerates therapeutic development.

Multimodal Data Integration

Tempus has built one of the world’s largest libraries of clinical and molecular data, encompassing de-identified patient records, genomic sequences, imaging data, and more. This comprehensive dataset enables a holistic view of patient health, facilitating precise and personalized medical insights. 

Artificial Intelligence and Machine Learning

Leveraging AI and machine learning, Tempus analyzes complex datasets to uncover patterns and correlations that inform patient care and drug development. These technologies enable the development of predictive models that assist in diagnosing diseases, selecting appropriate therapies, and identifying potential clinical trial candidates.

Tempus Operating System (OS)

The Tempus OS is a platform that combines data, technology, and generative AI at scale for providers and researchers. It enables seamless access to Tempus’ multimodal data, facilitating real-time, data-driven decisions in clinical settings. 

AI-Enabled Diagnostic Tools

Tempus develops AI-driven diagnostic tools that integrate clinical, molecular, and imaging data to provide actionable insights. For instance, the Tempus ECG-AF algorithm, which received FDA 510(k) clearance, identifies patients at increased risk of atrial fibrillation, enabling early intervention and management.

Accolades and Algorithms: Tempus Takes the Lead

Tempus AI has significantly impacted the healthcare industry by integrating artificial intelligence into precision medicine, enhancing diagnostics, and personalizing patient care. In June 2024, Tempus AI launched its initial public offering (IPO) on the Nasdaq Global Select Market under the ticker symbol “TEM.” The company offered 11.1 million shares at $37 each, raising approximately $410.7 million and achieving a market capitalization exceeding $6 billion. (Fierce Healthcare)

In July 2024, the Centers for Medicare & Medicaid Services (CMS) granted Advanced Diagnostic Laboratory Test (ADLT) status to Tempus AI’s xT CDx, a next-generation sequencing assay. This designation, following the test’s approval by the U.S. Food and Drug Administration (FDA), recognized its clinical value in providing tumor mutation profiling for patients with solid organ neoplasms. The ADLT status facilitates broader access to this diagnostic tool, potentially improving cancer diagnosis and treatment outcomes. (Tempus Investors)

In July 2024, Wall Street brokerages initiated coverage with positive ratings, citing the company’s AI-driven clinical and molecular data library as a differentiator in developing advanced diagnostic tools.

It Takes a Village: Tempus’ Power Partnerships in Precision Medicine

Tempus AI has established numerous strategic partnerships to advance precision medicine. In November 2021, Tempus entered a multi-year collaboration with AstraZeneca to leverage its AI-enabled platform and extensive multimodal data repository. This partnership aims to enhance oncology therapeutic programs globally by combining Tempus’ data analytics with AstraZeneca’s research and development expertise. (AstraZeneca)

In May 2022, Tempus announced a strategic collaboration with Pfizer to utilize AI and machine learning in oncology therapeutic development. Through this agreement, Pfizer accesses Tempus’ de-identified, multimodal data and analytical tools to inform novel drug discovery and development, aiming to accelerate the delivery of innovative treatments to patients. (Tempus)

In November 2023, Tempus partnered with Recursion, a clinical-stage techbio company, to advance biomarker-driven therapeutic development. This collaboration grants Recursion access to Tempus’ extensive multimodal data library, facilitating insights that support Recursion’s therapeutic programs. (Tempus)

In October 2024, Avacta Therapeutics entered a strategic collaboration with Tempus to enhance AI-driven drug development in oncology. Avacta gains access to Tempus’ multimodal datasets, including primary tumor samples and associated clinical data from over 200,000 patients across various cancer types. This partnership aims to explore tumor microenvironment biology and fibroblast activation protein activity, fundamental to Avacta’s pre|CISION® technology. (Globe Newswire)

In June 2024, SoftBank Group launched a joint venture with Tempus AI to introduce AI-powered medical services in Japan. The venture utilizes Tempus’ AI technology to analyze patient data, such as genetic information and medical records, providing treatment options to doctors. 

Dollars and Data: How Tempus Stays Ahead in the Business of Health

Tempus AI has raised substantial capital through multiple funding rounds to fuel its advancements in precision medicine and artificial intelligence. The company has secured a total equity funding of $1.05 billion across seven rounds, supported by 11 institutional investors.

Series C &D

Tempus’ funding journey began with its Series C round on September 22, 2017, raising $70 million with contributions from New Enterprise Associates and Revolution. By March 23, 2018, the company raised an additional $80 million in a Series D round, facilitated by Agile Equity and backed by T. Rowe Price, Kinship Capital, and Revolution.

Series E & F

In August 2018, Tempus closed a $110 million Series E round at a $2 billion valuation, with major institutional investors like Revolution and New Enterprise Associates alongside corporate entities such as Baillie Gifford and T. Rowe Price. Another major milestone came in May 2019, when the company raised $200 million in its Series F round. Investors included Novo Holdings, Franklin Templeton Investments, and Revolution.

Series G

The Series G funding round brought in $100 million in March 2020, followed by another $200 million in December 2020. Google, Baillie Gifford, and Franklin Templeton Investments were key contributors. This round valued Tempus at $8.1 billion, showcasing its growing prominence in the precision medicine sector. Subsequent funding rounds in 2022 included an undisclosed Series G tranche and a conventional debt round, indicating sustained investor confidence.

Revenue

Tempus has experienced consistent growth in revenue, reflecting its expanding influence in healthcare. In FY 2023, the company generated $617.8K in revenue, a significant increase from $279.8K in FY 2022. 

Closing the Loop: Tempus AI and the Cure for Mediocre Medicine

Tempus AI uses artificial intelligence to transform healthcare. It focuses on precision medicine, providing personalized treatment options to patients. The company collects and analyzes vast amounts of clinical, molecular, and imaging data. This helps doctors make better decisions based on individual patient needs. Tempus also accelerates drug discovery by supporting pharmaceutical companies with AI-driven insights.

By building one of the largest libraries of clinical and molecular data, Tempus enables breakthroughs in research. Their AI-powered solutions speed up the development of life-saving therapies. Collaborations with global pharmaceutical leaders and academic institutions strengthen their impact on healthcare innovation.

Their journey proves that innovation can solve even the toughest problems. If you have a groundbreaking idea, take the leap. Want more stories of transformative startups? Read more at Venture Kites. Explore insights into tech-driven healthcare, AI innovation, and entrepreneurial success.