Healthtech Startup Abridge Raises $150 Mn to Bolster AI Services

The investment led by Lightspeed and Redpoint Ventures signals increasing investor interest in industry-specific AI applications.

Pittsburgh-based Abridge, a healthtech startup specializing in artificial intelligence-powered clinical documentation tools, has secured $150 million in its Series C funding round. The investment, led by Lightspeed Venture Partners and Redpoint Ventures, signifies growing interest from investors in AI applications tailored for specific industries. The funding round, which values Abridge at approximately $850 million, comes just four months after the startup's previous funding round, where it was valued at over $200 million. Abridge, founded in 2018 by Dr Shivdev Rao, Florian Metze, and Sandeep Konam, focuses on improving healthcare comprehension. Their AI platform, designed specifically for medical discussions, aims to streamline clinical documentation processes. By transforming patient-clinician conversations into structured clinical notes in real-time, Abridge facilitates better integration with EMRs. The startup’s features such as Linked Evidence and auditable AI, Abridge strives to achieve responsible AI deployment in healthcare, setting industry standards. Commenting on the core values of the startup, Dr Shivdev Rao, CEO and cofounder of Abridge said, "This company was founded on the premise that clinician-patient conversations are at the core of all healthcare.” He emphasized that the current information is driving a revolution in AI-based documentation and will pave the way for enhancing patient outcomes in the future. The Series C investment, spearheaded by Lightspeed Venture Partners, highlights the increasing traction of Abridge's clinical documentation approach. With Lightspeed Venture Partners joining the board, the startup anticipates gaining significant expertise and strategic insight.

Empowering Healthcare Systems

Abridge has also announced an enterprise agreement with the Yale New Haven Health System. As per the startup, this partnership will provide thousands of clinicians with access to Abridge's cutting-edge AI platform, aimed at streamlining clinical documentation processes. By leveraging ambient listening technology, Abridge aims to alleviate the cognitive burden on clinicians, enabling them to dedicate more time to direct patient care.

Adding insights, Paul Ricci, advisor at Lightspeed Venture Partners and former Chairman and CEO of Nuance Communications, said, "Freeing doctors from the burden of documentation will dramatically improve both quality of care and the doctor-patient relationship."

Driving Innovation in Healthcare

With a focus on fundamental research, Abridge aims to advance the boundaries of healthcare AI, developing foundation models that draw upon extensive healthcare data. The recent fundraise will enable Abridge to bolster its existing product lines while exploring new avenues for enhancing patient outcomes through AI-driven insights.

Commenting on the development, Sebastian Duesterhoeft, partner at Lightspeed Venture Partners, said, "Abridge stands out for their innovation in all facets of product development," emphasizing the company's role in setting new standards for note quality and evaluation methodology.

Recent Fundraises in Healthtech Startups

In a parallel development, Unfabled, a London-based healthcare provider dedicated to women's health and wellbeing, secured $1.6 million in Seed funding. Founded by Hannah Samano in 2021, Unfabled aims to revolutionize women's healthcare through data-driven solutions. The funding round, which saw participation from notable investors including Morgan Stanley and Atomico Angels, will support Unfabled's expansion efforts and bolster its in-house data science capabilities. With a focus on B2B offerings, Unfabled is poised to make significant strides in advancing women's health and wellbeing.