- Healthcare AI startup has closed a $30 million Series B funding round, Business Insider has learned.
- The startup is rumored to have landed a $350 million valuation, with Oak HC/FT leading the raise.
- Regard's tech uses AI to help doctors synthesize patient data and even find diagnoses.
Investors are pouring money into startups to help healthcare practices and insurers tackle administrative tasks, from clinical documentation to billing, with artificial intelligence. A hot AI startup just grabbed Series B funding in that competitive market.
Regard has closed its Series B funding round, according to four people with knowledge of the efforts, to power its AI that helps doctors with tasks like synthesizing patient data for documentation and even suggesting diagnoses, Business Insider has learned.
The startup initially set out to raise about $30 million, according to two sources.
It's rumored to have landed a $350 million valuation, with top healthtech VC firm Oak HC/FT leading the round, per one source familiar.
Details of the round may be subject to change. Regard declined to comment for this story.
Los Angeles-based Regard last raised funding in June 2022, a $15.3 million Series A round led by Calibrate Ventures and Foundry Group that brought its total funding to $20.5 million.
While healthcare startup valuations sunk in the market downturn, investors told BI in April that startups leveraging AI are landing outsize valuation multiples. Regard, founded in 2017, was bringing in about $8 million in annual recurring revenue at the end of 2023, according to two people with knowledge.
Health systems and insurers are increasingly eager to adopt AI solutions to decrease provider burnout and manage surging costs.
The market is quickly filling with startups seizing on that opportunity and developing tech to target the distinct pain points in healthcare administration. Abridge grabbed a $150 million Series C in February for its AI-powered clinical documentation tech, while Cohere Health landed $50 million the same month for its automated prior authorization solution.
As competition swells, many of these startups are clamoring for big health system partnerships. Regard expanded its partnership with nonprofit health system Banner Health in March, a deal that will see Regard's tech deployed in 33 of Banner's acute-care hospitals across six states.
Two sources said the contract with Banner will contribute $1.8 million to Regard's annual revenue.
Regard's co-pilot tool is reportedly used by more than 100 hospitals. The startup also announced a partnership with OpenAI in August to use GPT-4 to build new chatbot tools.