Radiology technology startup Rad AI has lately raised $50 million in Series B funding round that was led by Khosla Ventures. Other investors who participated were World Innovation Lab, ARTIS Ventures, OCV Partners, Kickstart Fund and Gradient Ventures.
Rad AI was founded in 2018 by Dr. Jeff Chang and entrepreneur Doktor Gurson. It mainly focuses on developing innovative tools that can streamline the workflow of radiologists.
Dr. Chang started his medical training as a radiologist when he was just 16 years old and later earned an MBA degree from UCLA. He observed that the radiologists spend much time on documenting findings rather than analyzing images. He therefore was inspired to come up with Rad AI’s proprietary technology.
The core product of Rad AI is a sophisticated tool that is trained on extensive radiology report datasets with the use of generative AI and specifically the Large Language Models (LLMs). The technology automates documentation of doctors’ findings and impressions. The technology also saves valuable time for radiologists.
As of now, Rad AI serves about one-third of U.S. health systems and nine of ten largest radiology groups in the country. Early adoption of LLM technology sets the company apart from competitors.
The fresh capital will help Rad AI in expanding its team to deploy their latest standalone radiology reporting solution product. It is also simultaneously actively hiring professionals to install and maintain the innovative software.
Gurson said he is confident in Rad AI’s market position and it is estimated that 99% of the market is currently using their products. The company is unrivaled in its customer retention as well as market penetration.
