Andreessen Horowitz is leading a $300m funding round in Abridge AI, a health tech company leveraging generative AI to automate medical transcription, in a deal that values the business at $5.3bn, according to a report by Bloomberg citing sources familiar with the matter.
The Pittsburgh-based company, which previously raised $250m at a $2.75bn valuation in February, has seen its valuation nearly double in just a few months – highlighting growing investor appetite for AI-powered vertical software solutions. Khosla Ventures is also participating in the latest round, the sources said.
Founded in 2018 by Shiv Rao, a former cardiologist, Abridge AI aims to streamline clinical documentation by using AI to transcribe and summarise doctor-patient conversations in real time – addressing a key bottleneck in healthcare productivity and billing.
While early reception among healthcare professionals was cautious, Abridge has benefitted from the recent surge in generative AI adoption. Speaking to Bloomberg earlier this year, Rao described the company’s trajectory as an overnight success, six or seven years in the making, catalysed by advances in large language models such as OpenAI’s.
To date, Abridge has raised over $400m in venture capital from a roster of prominent investors, including IVP, Spark Capital, Union Square Ventures, Elad Gil, and Bessemer Venture Partners.
