Why We Invested in WavelyDX

Ear infections are the number one reason children visit the doctor, driving over 30 million appointments annually in the U.S. alone. Despite the growing adoption of telehealth, current virtual care tools can’t diagnose middle ear infections – a critical gap that leads to unnecessary in-person visits and fuels overprescription of antibiotics.

WavelyDx is changing that. At Blu Venture Investors, we’re proud to back WavelyDx as they bring a first-of-its-kind smartphone-based diagnostic solution to market, enabling accurate, at-home diagnosis of pediatric ear infections. By turning the phones already in parents’ pockets into powerful diagnostic tools, WavelyDx is redefining virtual pediatric care, starting with the 8.7 million annual cases of ear infections in children.

About WavelyDx

WavelyDx’s flagship product uses acoustic reflectometry to detect middle ear fluid – the key clinical indicator of ear infections – through a smartphone app and a disposable ear tip. This makes WavelyDx the only at-home solution to meet American Academy of Pediatrics (AAP) guidelines for diagnosis. The technology is FDA-listed and has demonstrated strong clinical performance, with up to 86% sensitivity and 84.5% accuracy.

Unlike traditional otoscopes or visual-only tools, WavelyDx is optimized for asynchronous telehealth workflows. Families use the app to scan their child’s ear and answer symptom questions, and clinicians receive high-quality data for rapid remote diagnosis and treatment. With this approach, WavelyDx reduces unnecessary clinic visits and antibiotic prescriptions, all while preserving continuity of care with the child’s provider. 

Inside Look at Blu’s 5 Ts for WavelyDx

Team

CEO Arna Ionescu Stoll is a seasoned digital health leader with a background in design thinking and product development at IDEO. Since joining in 2022, she’s transformed WavelyDx from a university spinout into a commercially viable, regulatory-compliant company with paying customers and an experienced  team. Deal lead Ted Olsen credits the company’s successful pivot to Arna’s capital efficiency and effective leadership style, which he describes as “flexible, firm, and fair.” 

Arna is joined by a deep bench of experts, including Dr. Jud Heugel (Chief Medical Officer, board-certified pediatrician), Dmitry Kaplan (Chief Science Advisor, DSP/ML med device veteran), and Ehud Gelblum (fractional CFO, former Flatiron Health). Investors and partners consistently cite Arna’s pragmatism, clarity, and ability to attract high-caliber talent as a major driver of WavelyDx’s progress.

Technology

WavelyDx’s patented acoustic reflectometry engine enables real-time, cross-device calibration – overcoming a major technical hurdle in smartphone-based diagnostics. Their solution is FDA-listed, device-agnostic, and HIPAA-compliant, with significant trade secret protection and a pending patent.

Unlike existing tools that rely on visual data – which misses middle ear fluid in nearly half of cases – WavelyDx’s approach delivers clinical-grade performance via a consumer-grade interface. The company also recently introduced a DIY ear tip template, further reducing friction for at-home adoption.

Traction

WavelyDx has developed a strong pipeline of B2B customers, with a 100% contract renewal rate. They have established pilot partnerships with leading health systems including Geisinger and Arkansas Children’s, both of which are actively deploying the tool in real-world settings. Additionally, WavelyDx signed an agreement with GoCheckKids, which serves over 4,000 pediatric offices nationwide. Early feedback from both providers and families has been overwhelmingly positive, with treatment concordance rates up to 85% and a 22% improvement in antibiotic stewardship compared to national telehealth averages. Ted Olsen highlights the efficacy and deployability of the technology, stating that “it should be an enabler to allow people to get the help they need at a lower overall cost for the healthcare system.” The company is also exploring DTC and white-label strategies, with pilots under NDA with major consumer health platforms. 

TAM (Total Addressable Market)

WavelyDx’s beachhead market in pediatric ear infections represents a $640M opportunity, with over 10 million antibiotic scripts and 8.7 million diagnoses annually.

Longer term, the company plans to expand into adjacent conditions such as skin rashes, strep throat, and asthma – which together represent a combined TAM of $4.9B. WavelyDx’s modular software infrastructure and existing EMR integrations make this expansion highly capital-efficient, leveraging the same smartphone interface and customer base across indications.

Terms

Blu Venture Investors is proud to support WavelyDx in their Convertible Note round. The funds will support market expansion, commercial hires, and partnership conversions. Blu is excited to support WavelyDx with venture partner Ted Olsen as the deal lead throughout the next phases of their growth.  

Our Perspective

WavelyDx exemplifies the kind of visionary, pragmatic company we look for at Blu. The company has overcome technical and regulatory hurdles that have stymied others in this space, and it now stands alone as the only at-home diagnostic for ear infections capable of virtual diagnosis at scale.

With a strong team, defensible technology, and a roadmap to profitability in 2026, WavelyDx is not just improving pediatric care – it’s creating a new category in digital diagnostics. We’re excited to support Arna and the WavelyDx team as they build the future of remote pediatric healthcare.