The round was co-led by Kleiner Perkins and the OpenAI Startup Fund, with participation from existing investors Andreessen Horowitz and Optum Ventures.
San Francisco-based Ambience Healthcare, a startup at the intersection of artificial intelligence and healthcare, has secured $70 million in a Series B funding to upgrade its platform further and ease the administrative burden on clinicians.
Currently, the company focuses on the United States, catering to various ambulatory specialties such as cardiology, oncology, pediatrics, and ENT (ear, nose, and throat) services.
Leading the funding round are Kleiner Perkins and OpenAI's Startup Fund, with participation from prominent backers such as Andreessen Horowitz and Optum Ventures.
Notably, Kleiner Perkins and OpenAI have previously co-invested in similar AI ventures, further emphasising the synergies driving innovation in this sector.
Reflecting on the significance of Ambience Healthcare's solutions, Mamoon Hamid, a partner at Kleiner Perkins, said, "The market has been screaming for a solution like Ambience, but even with the recent advances in generative AI, this has been an exceedingly challenging problem." Hamid emphasised the difficulty in achieving both medical accuracy and user-friendly interfaces within healthcare technology.
This funding follows Ambience Healthcare's rapid expansion within the healthcare sector, marked by successful deployments across major organisations, including UCSF, Memorial Hermann Health System, John Muir Health, The Oncology Institute, GI Alliance, Midi Health, and Eventus WholeHealth.
As per the company website, Ambience Healthcare offers a suite of AI-powered applications designed to alleviate clinician burnout, enhance system efficiency, and improve patient care quality. Among its flagship products are:
- AutoScribe: A real-time AI medical scribe streamlining note-taking across various clinical specialties.
- AutoCDI: A point-of-care assistant ensuring documentation accuracy and compliance with coding standards.
- AutoRefer: Facilitating seamless referrals between primary care and specialist providers.
- AutoAVS: Generating customised post-visit summaries for patients and caregivers.
- AutoPrep: Upcoming intelligent pre-charting tool to aid clinicians in visit preparation.
Commenting on the development, Brad Lightcap, COO of OpenAI and manager of the OpenAI Startup Fund, said, "Healthcare is one of AI's most promising opportunities to create an outsized positive impact on the world."
Founded in 2020 by Mike Ng and Nikhil Buduma, Ambience Healthcare is a trailblazer in AI-driven healthcare solutions. The roots of Ambience Healthcare trace back to the collaborative efforts of its cofounders, Michael and Nikhil, who initially crossed paths at MIT. Their personal experiences with medical challenges, including broken back and heart issues, instilled in them a profound understanding of patient and clinical processes.
With this latest funding round, Ambience Healthcare aims to accelerate its product roadmap, expand its team to better support partner organisations, and further advance the capabilities of its AI foundation models. The company's vision extends beyond clinical documentation to encompass other critical healthcare initiatives such as prior authorisation and clinical trial matching.
In December 2023, PursueCare, a virtual substance use disorder startup based in Middletown, Conn, secured $20 million in Series B funding from T.Rx Capital and Yamaha Motor Ventures, with participation from Seyen Capital and OCA Ventures.
The funding aimed to support PursueCare's ongoing collaborative care initiatives with health systems across 11 states and facilitate its expansion into value-based care with Medicaid managed care and other health plans.
Additionally, PursueCare acquired software-based digital therapeutics, including reSET and reSET-O from Pear Therapeutics, FDA-authorized app-based treatments for SUD and OUD, respectively. The acquisition of reSET-A, a digital therapeutic for alcohol use disorder, further supports PursueCare's expansion into alcohol addiction treatment and prevention.
In November, Sunnyside, a digital health company, raised $11.5 million in Series A funding. The investment, led by Motley Fool Ventures and supported by a consortium of investors, including Will Ventures, Uncork Capital, and Offline Ventures, among others, enabled Sunnyside to develop an app aimed at helping users manage their alcohol consumption and establish healthier habits. The funding also facilitated the rollout of "Sunny," an AI-mindful drinking coach, and expanded social connections within the member community.
Furthermore, in November, Cytovale, a medical diagnostics company, raised $84 million in Series C funding from Norwest Venture Partners, Sands Capital, and Global Health Investment Corporation (GHIC). The funding aimed to support the rollout of IntelliSep, a rapid sepsis diagnosis test recently cleared by the FDA, to more hospital emergency departments and health systems.
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