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Total amount raised
$155M
Latest funding date
2025-05-20
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.
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 Extension (Strategic Investment)
- Amount Raised: USD 8,000,000
- Date: May 20, 2025
- Lead Investors: Advocate Health, Memorial Hermann Health System, Corewell Health, Atlantic Health System
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To advance enterprise AI in healthcare, extend Rad AI's generative AI capabilities across complex clinical environments, and deepen strategic partnerships with major U.S. health systems operating over 100 hospitals collectively.
- Series C
- Amount Raised: USD 60,000,000
- Date: January 30, 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. Participating investors included Khosla Ventures, World Innovation Lab, UP2398, Kickstart Fund, OCV Partners, and Cone Health.
- Series B
- Amount Raised: USD 50,000,000
- Date: May 7, 2024
- Lead Investors: Khosla Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the company's operations and expand its generative AI solutions across health systems globally. Participating investors included World Innovation Lab, ARTIS Ventures, OCV Partners, Kickstart Fund, and Gradient Ventures.
- Series A
- Amount Raised: USD 25,000,000
- Date: November 10, 2021
- Lead Investors: ARTIS Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To drive further development and commercialization of Rad AI's products, advance the mission to automate radiology report writing, improve accuracy, and reduce radiologist burnout. Participants included OCV Partners, Kickstart Fund, and Gradient Ventures.
- Seed
- Amount Raised: USD 8,000,000
- Date: August 2020
- Lead Investors: Kickstart Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop initial AI-driven products and establish a foothold in the radiology market.
- Seed (Pre-Seed)
- Amount Raised: USD 4,000,000
- Date: November 25, 2019
- Lead Investors: Gradient Ventures (Google's AI Fund)
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch Rad AI and build foundational innovations in radiology AI. Participants included Array Ventures, Fifty Years, GMO Venture Partners, Hike Ventures, Precursor Ventures, and UP2398.
Total amount raised: USD 155,000,000 (at least, based on disclosed funding). Current valuation: USD 525,000,000 (as of Series C, January 2025).
Key Investors
- Transformation Capital
- Details: Transformation Capital is a Boston-based growth equity firm that led Rad AI's Series C funding round in January 2025. 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 in May 2024 and participated in the Series C.
- Investment Focus Areas: Healthcare, technology, AI
- Notable Investments: Square, DoorDash, Impossible Foods
- Advocate Health
- Details: Advocate Health is one of the largest nonprofit health systems in the U.S. They co-led Rad AI's Series C extension (May 2025) as a strategic investor alongside three other health systems.
- 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 healthcare network based in New Jersey. They co-led Rad AI's Series C extension in May 2025, reflecting strong strategic alignment with Rad AI's enterprise AI platform.
- 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 co-led Rad AI's Series C extension in May 2025.
- 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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