Last Updated: 30 January 2025
Rad AI, a leading healthcare AI company, has secured a $60 million Series C funding round, bringing its valuation to $525 million. The oversubscribed round was led by Transformation Capital, with participation from existing investors Khosla Ventures, World Innovation Lab, UP2398, Kickstart Fund, OCV Partners, Cone Health, and others. This follows a $50 million Series B round just seven months ago.
Radiology plays a critical role in healthcare, accounting for nearly 10% of U.S. healthcare spending and over 80% of all healthcare data. With 700 million imaging exams conducted annually, radiologists face mounting workloads. Surveys indicate that 88.4% of radiologists are either at full capacity or overextended, exacerbating burnout.
With over $140 million in total funding, Rad AI is a front-runner in generative AI solutions for healthcare. Thousands of radiologists across the U.S. rely on its technology, supporting nearly 50% of all medical imaging. Rad AI was recently named the 19th fastest-growing company in North America by Deloitte’s Fast 500 rankings.
Rad AI pioneered the first generative AI solution in healthcare in 2018 with Rad AI Impressions. Their latest advancement, Rad AI Reporting, streamlines the radiology workflow, reducing dictated words by up to 90% and cutting reporting time by 50%. This earned the title of 'Best New Radiology Software of 2023' from AuntMinnie.
“Radiologists play a vital role at the center of our healthcare system, enabling early diagnosis and prevention of illness. Rad AI’s generative AI solutions help radiologists and other healthcare providers tackle some of our industry’s greatest challenges by significantly improving provider efficiency, alleviating burnout, and advancing the quality of patient care. Customers love Rad AI and we are proud to partner with their team.”
Vinay Shah, partner at Transformation Capital
Rad AI is also transforming patient follow-up with Rad AI Continuity, which ensures critical radiology findings—such as potential new cancers—receive timely attention. By automating follow-ups, Rad AI has helped increase follow-up rates from 30% to over 75%, leading to earlier cancer diagnoses and improved patient outcomes.
"At Rad AI, we focus on empowering physicians with AI – saving physicians time, reducing burnout and improving the quality of patient care. Over the past few years, Rad AI has become a mission-critical part of physician and health system workflows across North America. This strategic funding round will accelerate our progress as the leading AI-driven workflow platform in healthcare."
Doktor Gurson, co-founder and CEO at Rad AI
With this latest investment, Rad AI plans to scale its AI-driven workflow solutions, expand its reach across health systems, and enhance product development. The funding will also support hiring across multiple roles, strengthening its team to tackle some of healthcare’s most complex challenges.
The company aims to broaden its AI applications, ensuring that radiologists and health systems benefit from more efficient, accurate, and streamlined workflows. Further, Rad AI is exploring international expansion to bring its solutions to new markets.
Founded in 2018 by Doktor Gurson and Dr. Jeff Chang, Rad AI has established itself as a leader in AI-powered radiology solutions. The company’s flagship product, Rad AI Reporting, enhances reporting workflows, while Rad AI Impressions was the first generative AI tool widely adopted in radiology. Rad AI Continuity focuses on ensuring patient follow-ups for potential new cancers.
Rad AI has been recognized as one of the most promising healthcare AI companies, receiving accolades from CB Insights, AuntMinnie, and Deloitte’s Fast 500. Its impact on radiology is redefining how AI enhances healthcare delivery.
