Function Health closed a $298 million Series B round that values the lab-testing startup at $2.5 billion and underscores investor demand for consumer-facing diagnostics platforms. The Austin-based company offers subscription access to an expanded menu of lab tests and imaging and plans to scale operations and provider access. Investors and industry observers flagged elevated competition in the direct-to-consumer and clinical lab space as incumbent and startup players race to expand test menus and reimbursement pathways. The financing is one of several large rounds for lab-focused businesses this year and signals continued capital flows into diagnostic scaling and consumer health data plays.