June 24 (Reuters) – Healthcare firm Abridge, which uses artificial intelligence to build medical documents, has raised $300 million at a $5.3 billion valuation, it said on Tuesday.
The latest funding round, aimed at improving revenue cycles and bridging the gap between clinicians and billing teams, was led by venture capital firm Andreessen Horowitz – also known as A16z – with participation from Khosla Ventures.
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Startups that leverage AI have received ample interest from venture capital firms since last year, with large-scale funding rounds and steep valuations driving an otherwise muted private market.
Founded in 2018, Pittsburgh-based Abridge automates clinical notes and medical conversations for doctors using AI.
“While the healthcare system has evolved over the last 30 years, the one constant has been rising costs and the growing burden on clinicians and patients alike,” said David George, general partner at A16z, adding that Abridge addresses these particular issues.
Abridge also said it is partnering with over 150 enterprise health systems across the U.S.
The firm was valued at $850 million after a funding round last year where it raised $150 million.
It also announced the expansion of its platform last week to farther inpatient care and streamline outpatient orders.
Reporting by Pritam Biswas in Bengaluru; Editing by Sonia Cheema
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