Imaging artificial intelligence firm Rad AI raises $60M, boosts value to $525M
Imaging artificial intelligence firm Rad AI has raised $60 million in support, boosting the company’s value to $525 million in the process.
Boston-based growth equity firm Transformation Capital led the Series C funding round, which increases Rad AI’s war chest to over $140 million. Business Insider first reported the news Friday, citing unnamed sources with knowledge of the matter.
The San Francisco-headquartered startup had not yet officially issued an announcement about the fundraising round as of Sunday and did not immediately respond to a Radiology Business request for comment.
Rad AI recently made the news as one of the 20 fastest growing tech companies in America, according to consulting firm Deloitte. Co-founded by Jeff Chang, MD, MBA, the “youngest U.S. radiologist in history,” in 2018, the company achieved revenue growth of 8,710% between 2020 and 2023.
Its products include Rad AI Reporting, which employs machine learning and generative AI to help radiologists create reports with “remarkable speed.” Rad AI Impressions, meanwhile, can automatically generate summaries from physicians’ dictated findings, while Rad AI Continuity helps close the loop for patients with incidental imaging findings. The “fastest growing radiologist-led AI company,” nearly 50% of all U.S. health systems and imaging practices now use its technology.
Rad AI also recently made venture capital firm TRAC’s list of possible future “unicorns,” with a 1 in 5 chance of growing its value to $1 billion, Business Insider noted.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.