Total amount raised
$143 Million
Latest funding date
1/1/2025
Location
Rad AI has successfully raised funding over five rounds, with the latest being a Series C round involving investors such as Advocate Health, Atlantic Health System, Corewell Health Ventures, and Memorial Hermann Health System. The company offers AI-driven solutions to enhance radiology workflows, reduce burnout, and improve patient care.
Keep reading to explore the intricacies of Rad AI's fundraising journey and the investors backing this innovative platform.
What Is Rad AI?
Rad AI is a company based in San Francisco, California, specializing in AI-driven solutions for radiology. The company operates in the fields of artificial intelligence, enterprise software, and health care, aiming to enhance radiology workflows and reduce burnout among radiologists.
Founded with the mission to automate radiology report writing, Rad AI has grown to employ between 101-250 people. Their products, such as Rad AI Reporting and Rad AI Impressions, are designed to improve productivity and patient care by leveraging generative AI.
How Much Funding Has Rad AI Raised?
- Series C
- Amount Raised: USD 60,000,000
- Date: January 2025
- Lead Investors: Transformation Capital
- Valuation at Round: USD 525,000,000
- Motivation Behind the Round: To accelerate Rad AI's progress as the leading AI-driven workflow platform in healthcare, empowering physicians with AI to save time, reduce burnout, and improve patient care.
- Series B
- Amount Raised: USD 50,000,000
- Date: May 2024
- Lead Investors: Khosla Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the company's operations and expand its market presence.
- Series A
- Amount Raised: USD 25,000,000
- Date: November 2021
- Lead Investors: Artis Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the company's AI capabilities to automate radiology report writing, improve accuracy, and reduce radiologist burnout.
- Seed
- Amount Raised: USD 8,000,000
- Date: August 2020
- Lead Investors: Gradient, Kickstart
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial AI-driven products and establish a foothold in the radiology market.
Total amount raised: USD 143,000,000. Current valuation: USD 525,000,000.
Key Investors
- Transformation Capital
- Details: Transformation Capital is a Boston-based growth equity firm that led Rad AI's Series C funding round. They specialize in investing in healthcare technology companies.
- Investment Focus Areas: Healthcare technology
- Notable Investments: Specific notable investments are not detailed in the sources.
- Khosla Ventures
- Details: Khosla Ventures is a venture capital firm that provides funding for early-stage companies in various sectors, including healthcare and technology. They led Rad AI's Series B funding round.
- Investment Focus Areas: Healthcare, technology, AI
- Notable Investments: Square, DoorDash, Impossible Foods
- Advocate Health
- Details: Advocate Health is a healthcare network that provides a range of medical services and invests in healthcare innovations. They participated in Rad AI's Series C funding round.
- Investment Focus Areas: Healthcare services, healthcare innovations
- Notable Investments: Specific notable investments are not detailed in the sources.
- Atlantic Health System
- Details: Atlantic Health System is a non-profit health care network based in New Jersey. They are known for their comprehensive medical services and commitment to healthcare innovation.
- Investment Focus Areas: Healthcare services, medical research, healthcare innovations
- Notable Investments: Specific notable investments are not detailed in the sources.
- Corewell Health Ventures
- Details: Corewell Health Ventures is the investment arm of Corewell Health, focusing on innovative healthcare solutions. They participated in Rad AI's Series C funding round.
- Investment Focus Areas: Healthcare technology, medical devices, healthcare services
- Notable Investments: Specific notable investments are not detailed in the sources.
What's Next for Rad AI?
Rad AI stands at the cusp of significant growth opportunities, driven by its innovative AI-driven solutions that are already in use by nearly half of all U.S. health systems. The company’s recent $60 million Series C funding round, which brought its valuation to $525 million, positions it well to expand its market presence and develop new AI products. This financial backing underscores the substantial market potential and investor confidence in Rad AI's technology.
Future fundraising opportunities appear promising, with the potential for additional venture capital rounds or even an Initial Public Offering (IPO) as the company continues to scale. However, Rad AI may face challenges such as competition from other AI-driven healthcare startups and navigating regulatory hurdles. Ensuring the accuracy and reliability of its AI-generated reports will be crucial to maintaining trust among healthcare providers.
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