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Australia-based Heidi Health, a company developing AI-enabled medical scribe software for clinical documentation, announced it closed a $65 million Series B funding round.
Point72 Private Investments led the round, with participation from existing investors Headline, Blackbird and Latitude.
The round brings the company's valuation to $465 million and its total funding to nearly $100 million.
Heidi also announced that it has made new appointments to its leadership team: Paul Williamson as chief revenue officer and Dr. Simon Kos as chief medical officer.
Williamson formerly held the position of head of revenue at Plaid, and Kos was chief medical officer at Microsoft.
WHAT IT DOES
Heidi Health offers an AI scribe that captures and dictates notes, provides summaries and helps with follow-up communications. The company utilizes its own AI and builds on top of Google's Gemini.
The global company works in the United States, Canada, Australia, New Zealand and the United Kingdom.
Heidi will use the funds to expand its office locations as well as its workforce. It will also provide local support to the UK, Canadian and U.S. markets.
The company said it will work to expand clinician adoption in Ireland, France, Spain, South Africa, Hong Kong, Germany and Singapore.
"We’re impressed by the adoption rates they’ve demonstrated within health systems and are excited to support their vision of expanding healthcare capacity while preserving the human touch in patient care," Sri Chandrasekar, managing partner at Point72 Private Investments, said in a statement.
MARKET SNAPSHOT
In March, Heidi Health partnered with healthcare distributor Hendrix Health to expand its AI medical scribe to align with and meet the requirements of New Zealand clinicians.
The partnership was announced in the same month that Heidi raised $17 million in additional Series A funding for its expansion and introduction of new functionalities, including pre-chart summary creation.
In 2023, the company raised A$10 million ($6.5 million) in a Series A funding round led by Blackbird Ventures.
Other companies in the U.S. offering AI scribe tools include Suki, which provides an AI-backed healthcare voice tool and last year announced it raised $70 million in Series D funding, bringing its total raise to $165 million.
Healthcare software company Commure offers an AI-enabled platform focused on helping healthcare providers with administrative work, and earlier this year scored $200 million in growth funding from General Catalyst's Customer Value Fund (CVF).
CVF helps late-stage companies grow without giving up ownership. Through CVF, General Catalyst covers the cost of sales and marketing and in return receives a share of the revenue from new customers generated by that investment, up to a fixed cap. After that, the company that received the investment keeps all future profits. General Catalyst is only paid if the company earns revenue from those customers.
