Investors predicted that 2025 would be a big year for healthcare AI fundraising, and this forecast already seems to be ringing true.
On Thursday, San Francisco-based healthcare AI developer Innovaccer announced the close of a $275 million Series F funding round, which featured investors like Kaiser Permanente, Banner Health, Danaher Ventures and B Capital Group. The company, which was founded in 2014, has raised $675 million to date.
Abhinav Shashank, Innovaccer’s CEO, said that his company addresses three of the most pressing issues facing healthcare organizations: fragmented data across different systems, the lack of a unified view of patient information, and concerns about data governance and trust.
Innovaccer seeks to solve these problems by “activating the flow” of healthcare data, he stated.
“Think of it as building a bridge between isolated islands of healthcare information to create a complete picture that helps doctors, hospitals and health systems provide better care,” Shashank declared.
He also said that Innovaccer’s AI platform can be thought of as a “sophisticated translator” for healthcare data.
First, the platform pulls in data from various sources and standardizes it into a common language. Then, Innovacer’s technology creates a complete picture of each patient’s health history.
The platform also uses AI to help providers make better decisions and automate routine tasks, such as clinical documentation and scheduling, Shashank noted.
“What makes it unique is that it combines all these capabilities in one platform — from organizing data to providing AI-powered tools that help with everyday healthcare tasks like scheduling appointments, managing prescriptions and coordinating patient care,” he remarked.
There is an abundance of startups in the healthcare AI space, so Shashank pointed to a number of companies that could be considered Innovaccer’s competitors.
For instance, Databricks and Palantir could be considered competitors on the data and analytics side of things, and Abridge and Ambience could be thought of as rivals in the AI scribing realm. One might consider the industry’s various EHR vendors and their specific data optimization tools as competitors to Innovaccer as well.
“Innovaccer is the only holistic platform with healthcare data infrastructure, analytics, AI models, and an ecosystem of co-pilots and agents that allows health systems, payers, public health organizations and life sciences companies to systemically drive AI adoption at scale across various departments rather than becoming a mess of point solutions,” Shashank stated.
He said his company will use its new capital to strengthen its AI capabilities, as well as build an ecosystem for AI developers on its platform. He also noted that Innovaccer plans to expand its collaborations with existing customers, which include Kaiser Permanente, Banner Health, Franciscan Health and Atlantic Health.
Innovaccer “definitely” has plans to go public “at some point,” but Shashank the company isn’t in any hurry.
Photo: Andrzej Wojcicki, Getty Images