Rad AI Closes $60Million Series C to Further Solidify Leadership in Healthcare Generative AI

Led by Transformation Capital, the Investment Accelerates Rad AI’s Development and Deployment of Generative AI Technology to Healthcare Providers and Systems Globally

Rad AI, one of the fastest growing healthcare AI companies and the first to successfully commercialize a generative AI product in healthcare, today announced a $60M Series C financing round, valuing the company at $525M. The 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. This raise comes seven months after their $50M Series B financing.

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Radiology is the largest specialty in healthcare, accounting for nearly 10 percent^[1] of all healthcare spend in the US and more than 80 percent^[2] of all healthcare data by size, with over 700 million imaging exams performed in the US each year. However, as the number of annual exams rise, radiologist burnout continues to worsen – national physician surveys^[3] have found that 88.4% of radiologists are either at capacity or overworked and overextended.

With total investment of over $140M to date, Rad AI has emerged as a leader in generative AI solutions for healthcare. The company’s solutions are used by thousands of radiologists every day at health systems and radiology practices across the country that account for nearly 50% of all medical imaging done in the US. Rad AI was recently named the 19th fastest-growing company in North America by Deloitte in its Fast 500 rankings.

“Radiologists play a vital role at the center of our healthcare system, enabling early diagnosis and prevention of illness,” said Vinay Shah, partner at Transformation Capital. “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.”

Rad AI pioneered the development of the first generative AI solution in healthcare in 2018, Rad AI Impressions. Their latest innovation, Rad AI Reporting, extends their innovative AI-native approach to the full radiology reporting workflow, reducing dictated words by up to 90 percent and saving providers up to 50 percent of their time. This groundbreaking solution earned the “Best New Radiology Software of 2023” award from AuntMinnie, one of the industry’s most prestigious honors.

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“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,” said Scott Bundy, MD, CEO and Chair of Strategic Radiology, the largest coalition of independent radiology practices in the US. “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.”

Rad AI is now also transforming patient follow-up with Rad AI Continuity by closing the loop on actionable findings in radiology reports – most commonly, potential new cancers. Using AI-driven automation, Rad AI Continuity helps ensure that patients are diagnosed and treated promptly. To date, Rad AI has increased follow-up rates at health systems from 30 percent up to 75 percent or more^[4], leading to earlier diagnoses of new cancers to help ensure patients receive prompt treatment, improving long-term prognosis and quality of life.

“At Rad AI, we focus on empowering physicians with AI – saving physicians time, reducing burnout and improving the quality of patient care,” said Doktor Gurson, co-founder and CEO at Rad AI. “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.”

Rad AI is now hiring across a wide range of roles, building a world-class team dedicated to solving some of the most complex challenges in healthcare technology.

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