Abridge, an innovative AI startup that automates medical note-taking, has raised $300 million in a Series E funding round, achieving a valuation of $5.3 billion. This investment round was led by Andreessen Horowitz, with support from Khosla Ventures, and follows Abridge’s previous $250 million fundraising in February at a valuation of $2.75 billion, as reported by leading financial publications. Founded seven years ago by cardiologist Shiv Rao, Abridge is regarded as a frontrunner in the fast-growing market for AI-powered medical scribes. Its success can be attributed in part to its early entry into the field and its strategic integration with Epic Systems, which is the leading software for electronic health records.
In the first quarter of the year, Abridge achieved $117 million in contracted annual recurring revenue. This figure encompasses all signed contracts that are set to generate recurring revenue, including those customers who have yet to be onboarded, showcasing the company’s solid growth trajectory. In conjunction with the recent funding, Abridge announced plans to expand its services by converting medical notes from patient visits into AI-powered medical codes. This new offering positions Abridge in direct competition with other startups like CodaMetrix and enhances its collaboration with Epic Systems.
The company’s AI scribe technology is reportedly utilized by over 150 major health systems across the United States, further establishing its strong presence in the healthcare technology landscape. With these developments, Abridge continues to pave the way for advancements in medical documentation and patient care efficiency.