Rad AI, which is one of the fastest-growing healthcare AI companies and the first to commercialize a generative AI product in healthcare, announced a $60 million Series C financing round, valuing the company at $525 million. This oversubscribed round was led by Transformation Capital, with participation from existing investors Khosla Ventures, World Innovation Lab, UP2398, Kickstart Fund, OCV Partners, Cone Health, and others. And this funding round comes seven months after their $50 million Series B.
Rad AI Reporting’s generative AI (GenAI) features save radiologists time and reduce fatigue, automatically generating draft report text in seconds. And radiology is the largest specialty in healthcare, accounting for a large percentage of all healthcare spending in the US, with hundreds of millions of imaging exams performed in the US each year. However, as the number of annual exams increases, radiologist burnout worsens.
With a total investment of over $140 million to date, Rad AI has emerged as a leader in generative AI solutions for healthcare. And the company’s solutions are used by thousands of radiologists daily at health systems and radiology practices across the country that account for nearly half of all medical imaging done in the US.
Rad AI has pioneered the development of the first generative AI solution in healthcare in 2018, Rad AI Impressions. And its latest innovation Rad AI Reporting extends its innovative AI-based native approach to the full radiology reporting workflow, reducing dictated words by up to 90% and saving providers up to 50% of their time. This solution earned the “Best New Radiology Software of 2023” award from AuntMinnie, one of the industry’s most prestigious honors.
Rad AI is also transforming patient follow-up with Rad AI Continuity by closing the loop on actionable findings in radiology reports – most commonly in the form of potential new cancers. And using AI-driven automation, Rad AI Continuity helps ensure patients are diagnosed and treated promptly. So far, Rad AI has increased follow-up rates at health systems from 30% up to 75% or more, leading to earlier diagnoses of new cancers to help ensure patients receive prompt treatment, improving long-term prognosis and quality of life.
KEY QUOTES:
“Radiologists play a vital role at the center 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. Customers love Rad AI and we are proud to partner with their team.”
– Vinay Shah, partner at Transformation Capital
“With nearly two-thirds of our practices currently utilizing Rad AI Impressions, our member practices consistently share the exceptional value they gain by using Rad AI’s industry-leading generative AI solutions. Rad AI has proven to be a tremendous partner to our groups, helping solve the acute staffing, burnout, and technology challenges facing radiology practices. Already, a third of our member practices are adopting their latest solution, Rad AI Reporting.”
– Scott Bundy, MD, CEO and Chair of Strategic Radiology, which is the largest coalition of independent radiology practices in the US
“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.”
– Doktor Gurson, co-founder and CEO at Rad AI
