Generative AI is heating up in healthcare — and one startup is raising more funding to help clinicians with the tech.
Medical scribe startup Abridge, which uses AI to record doctor-patient conversations and make notes in the patient’s electronic health record, is in talks to close a substantial round of funding less than four months after announcing its last fundraise, according to three people with knowledge of the efforts.
Two of those people said Abridge was seeking to raise at least $50 million. One person said Abridge’s post-money valuation could hit $500 million or higher.
With surging investor interest, though, terms of the deal could change and bring the startup a larger raise. Abridge declined to comment on any fundraising efforts for this story.
Abridge last banked a $30 million Series B in late October led by Spark Capital. The startup is also backed by institutional investors including CVS Health Ventures, Kaiser Permanente Ventures, and Mayo Clinic.
Abridge has raised $62.5 million to date. The startup was named to Business Insider’s list of the 44 startups to bet your career on in 2024.
While AI adoption in healthcare hasn’t been quite as frantic as in other industries, the tech is taking off for its potential to ease administrative tasks like clinical documentation as burnout drives many providers out of the field.
Abridge isn’t the only startup capitalizing on this trend. Ambience Healthcare, which provides AI software including tech for ambient clinical documentation, recently announced it had grabbed $70 million in Series B funding co-led by Kleiner Perkins and OpenAI’s Startup Fund, with existing investors Andreessen Horowitz and Optum Ventures participating. Medical scribe startup Nabla has already landed extra cash this year, too, raising a $24 million Series B in January.
Still, as a growing contingent of startups race to tackle clinical documentation with AI, they’ll have to contend with the behemoth in the space that is Microsoft’s Nuance. Microsoft agreed to buy the AI company in 2021 for $19.7 billion — its second-largest acquisition ever. Nuance claims its solutions are used by 77% of US hospitals.
Abridge has been working with health systems like the University of Pittsburgh Medical Center and the University of Kansas Health System to train its AI. The startup also landed a partnership with Epic in August to integrate the startup’s software into the electronic health record giant’s clinical workflows, further simplifying the use of Abridge’s tech for providers.
At the time of Abridge’s October Series B, the company said around 5,000 doctors were using its tech.
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