NewDays, a Seattle startup using a generative AI therapy to treat people with mild dementia, has raised additional funding and closed its seed round with $16 million. The funding was led by Madrona and General Catalyst.
The company also announced on Wednesday that it has expanded its services to Nevada, joining Washington, California, Florida, Texas and New York. NewDays offers telehealth visits with human clinicians once or twice a month alongside unlimited conversations with an AI companion named Sunny.
“Our goal isn’t to add years — it’s to add quality to the years people have,” said CEO and co-founder Babak Parviz.
The startup is addressing a widespread issue: one in three Americans over 65 experiences cognitive decline, with 11% living with dementia and another 22% with mild cognitive impairment. Patients use Sunny to engage in conversational topics, memory exercises, and language or reasoning games designed to strengthen cognitive function.
While these cognitive strategies are clinically proven, they have historically lacked broad accessibility, Parviz said. NewDays aims to make treatment scalable using AI and demonstrate measurable improvement.
This past July at the annual Alzheimer’s Association International Conference, the company presented research showing that NewDays patients with dementia performed better on cognitive tests than expected historical decline curves — translating to roughly 18 months of preserved cognitive function. The study was limited to 24 patients, half of whom have dementia and the other half experiencing other cognitive impairment.
“Generative AI under the guidance of an expert human clinician is what finally lets us deliver a medically proven intervention at that scale. That’s the whole thesis of the company,” Parviz said via email.
To further validate its platform, NewDays is currently running a randomized controlled trial with Kaiser Permanente in California.
Users can try Sunny for free before opting into a 20-minute clinical assessment to evaluate suitability for the full program. Clinical sessions cost $150 each. NewDays currently accepts traditional Medicare as an out-of-network provider and is working to secure in-network status with commercial insurers and Medicare Advantage plans.
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