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The frenzy has investors across industries rushing to get into AI deals, including in healthcare. AdvertisementStill, healthcare startups using AI have already raised hundreds of millions of dollars this year, especially to automate tedious administrative tasks for providers and health plans. Andrew Arruda, CEO of Flexpa FlexpaThe AI long-haulNot every startup needs to be an AI startup. AdvertisementPlus, healthcare companies that do want to use AI face higher stakes than other industries, contending with numerous privacy, regulatory, and safety issues, Kong noted. For example — if healthcare AI makes a mistake, could patient health be impacted?
Persons: , Scott Barclay, Nina Achadijan, Shiv Rao Abridge, VCs, nabbed, CodaMetrix, Aike Ho, Christina Farr, Andrew Arruda, that'll, Flexpa, he's, Flexpa's, Kong, Todd Cozzens, it's Organizations: Service, Business, Insight Partners, ACME Capital, nab, Catalyst, HealthQuest, Transformation Locations: Tech, Kong
Investors aren't anticipating healthcare funding to surge to anything resembling 2021 levels this year, and fewer deals could mean shutdowns for many companies running low on cash. Multiple healthcare startups have announced raises this year at Series B and beyond. Investors said there's now a higher bar for which startups get venture funding compared to 2021, however. Exits and shutdowns aheadWhile a number of biotech startups have jumped into the public markets already this year, the IPO window for healthcare startups has remained firmly shut. Still, many investors are optimistic that a few healthcare startups will test the waters later this year.
Persons: Anargha Vardhana, There's, they're, Christina Farr, haven't, Richard Drury, Scott Barclay, Shiv Rao, Vardhana, there's, Farr, Sara Choi, Ritankar Das, Supriya Jain, Jain, Barclay Organizations: Business, Insight Partners, Investors, Entrepreneurs, Wing Venture Capital, Boston Consulting Locations: orthopedics
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