
US-based healthcare AI technology company Rad AI has received $60m in an oversubscribed Series C financing round, led by Transformation Capital.
The Service C financing round, which values the company at $525m, comes seven months after the health technology company’s $50m Series B financing round.
Existing investors Khosla Ventures, World Innovation Lab, UP2398, Kickstart Fund, OCV Partners, and Cone Health, among others, participated in the funding round.
Rad AI intends to us the financing to support the development and deployment of generative AI (GenAI) technology to healthcare providers and systems worldwide.
Transformation Capital partner Vinay Shah said: “Radiologists play a vital role at the centre of our healthcare system, enabling early diagnosis and prevention of illness.
“Rad AI’s generative AI solutions help radiologists and other healthcare providers tackle some of our industry’s greatest challenges by significantly improving provider efficiency, alleviating burnout, and advancing the quality of patient care.”
According to Rad AI, radiology is the largest specialty in healthcare, accounting for nearly 10% of all healthcare spend in the US and more than 80% of all healthcare data by size.
National physician surveys found that 88.4% of radiologists are either overworked or overextended at capacity.
With a total investment of more than $140m to date, Rad AI has been providing generative AI solutions for radiologists at health systems and radiology practices across the country.
In 2018, Rad AI developed its first healthcare generative AI solution, Rad AI Impressions.
Its latest offering, Rad AI Reporting, extends the company’s AI-native approach, reduces the dictated words by up to 90% and saves up to 50% of healthcare providers’ time.
Currently, Rad AI is advancing patient follow-up with Rad AI Continuity, which enhances actionable findings in radiology reports, most commonly, potential new cancers.
Rad AI co-founder and CEO Doktor Gurson said: “At Rad AI, we focus on empowering physicians with AI – saving physicians time, reducing burnout and improving the quality of patient care.
“Over the past few years, Rad AI has become a mission-critical part of physician and health system workflows across North America.
“This strategic funding round will accelerate our progress as the leading AI-driven workflow platform in healthcare.”