US software company Rad AI has secured $60m in a Series C financing round as the uptake of AI in radiological workflows shows no signs of slowing.
The round, which was oversubscribed, was led by US digital health investors Transformation Capital, with participation from existing investors such as Khosla Ventures, World Innovation Lab, and UP2398.
Go deeper with GlobalData
“This funding enables us to grow and deliver exceptional value while delighting customers at every step,” Rad AI’s co-founder Doktor Gurson told Medical Device Network. The company did not further disclose where the funding will be distributed.
The Series C comes just seven months after Rad AI secured $50m in Series B financing and brings the company’s total investment to more than $140m. With the close of the Series C round, the privately held company is now valued at $525m.
The company’s flagship product, Rad AI Reporting, is a radiology reporting software that uses generative AI (genAI) to reduce dictation times and create reports quicker. A virtual assistant also helps identify and fix clinically significant errors during dictation. The company claims its platform makes dictation twice as fast and alleviates radiologist burnout.
While Rad AI has not disclosed its exact customer base, it says its solutions are used by thousands of radiologists across the US. Similar to many other digital health companies, Rad AI has tapped Google Cloud for connectivity capabilities.
The company recently turned its attention to improving patient follow-up rates with a new product, Rad AI Continuity. The software uses AI-driven automation to identify and categorise follow-up recommendations, which are then communicated to the healthcare provider.
Transformation Capital partner Vinay Shah said: “Radiologists play a vital role at the centre of our healthcare system, enabling early diagnosis and prevention of illness.”
“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.”
AI’s growth in radiology
Rad AI is certainly at the forefront of AI-powered radiology platforms and was recently named the 19th fastest-growing technology company in North America by Deloitte in its 2024 Technology Fast 500 rankings, courtesy of posting an 8,710% revenue growth.
A 2023 report by GlobalData predicts that global revenue for AI platforms across healthcare will reach $18.8bn by 2027, with one of AI’s most widely used applications in healthcare systems being radiology.
Rad AI is far from the only company in the space seeing investment, though its finance raises have eclipsed those from competitors. Germany-based deepc closed a €12m Series A extension in mid-2024, bringing total funding to €27.6m. With a customer base mainly in Europe, deepc is planning on expanding its market presence in the US. The company’s software specialises in radiology access and data integration, providing radiologists with a range of AI solutions to help with diagnoses and treatment decisions.
French medtech Gleamer, meanwhile, secured €4.5m in co-funding from the French Government to advance its CT scan assistance technology. In addition, New Lantern emerged from stealth in a $19m Series A round in November 2024, revealing its cloud-native AI radiology suite to help automate image analysis workflows.
