Rad AI, the developer of AI-powered radiology workflow automation software, raised $4 million in seed funding. Gradient Ventures, Google’s AI-focused venture fund, led the round with participation from UP2398, Precursor Ventures, GMO Venture Partners, Array Ventures, Hike Ventures, Fifty Years VC, and angel investors.
The company plans to use the latest funds to build out its engineering team and expand the rollout of its first product to more radiology groups and customers.
“Radiology is facing severe pressures that range from falling reimbursements to market consolidation. There is also a radiologist shortage that is exacerbated by rising imaging volumes nationwide. We help radiology groups significantly increase productivity while reducing radiologist burnout and improving report accuracy. By working closely with radiologists, we can make a positive impact on patient care,” said Founder Dr. Jeff Chang in the company press release.
Founded in 2018 and based in Berkeley, California, Rad AI uses machine learning to automate repetitive tasks of radiologists and improve radiologists’ workflows. Its software automatically generates the impression section of radiology reports, specifically in the preferred language of each radiologist.
Leveraging virtual reality, Rad AI’s software reads radiology reports and generates a summary of customized findings and recommendations that help radiologists precisely diagnose and treat diseases.
The company has partnered with several radiology groups, including Greensboro Radiology, Medford Radiology, Einstein Healthcare Network, and Bay Imaging Consultants.
Zachary Bratun-Glennon, Partner at Gradient Ventures, added, “The team at Rad AI is uniquely suited to apply innovative technology to this field, with strong radiology and AI experts and firsthand knowledge of this market. It’s exciting to see the quantitative benefits and positive feedback from their radiology customers, and we’re looking forward to the impact of their future products.”
Other similar technologies that received funding:
Oxipit, an AI-powered radiology diagnosis and reporting software maker that raised $1.7 million in a Seed funding round co-led by Practica Capital and Koinvesticinis Fondas (Co-Investment Fund), and Ikonopedia, the developer of a breast radiology reporting and patient tracking system, secured $2 million from Texas Women Ventures (TWV) Capital and existing Ikonopedia Board members and investors.
Since 2012, over 30 radiology companies received close to $600 million in VC funding, according to Mercom’s Digital Health Funding Tracker.