Abridge, a leading artificial intelligence startup specializing in the automation of medical note-taking, recently secured a $300 million Series E funding round, valuing the company at $5.3 billion. This substantial new investment, led by prominent venture capital firm Andreessen Horowitz with additional participation from Khosla Ventures, comes just four months after Abridge completed a $250 million funding round at a valuation of $2.75 billion.
The company, founded seven years ago by cardiologist Shiv Rao, has risen rapidly to prominence in the increasingly competitive market of AI-powered medical scribe services. Its early entry into the field and strategic integration partnership with Epic Systems, the leading healthcare record software provider, have significantly contributed to its market position. According to recent reports, Abridge reached an impressive $117 million in contracted annual recurring revenue (ARR) during the first quarter of this year, a figure that encompasses revenue from ongoing contracts, including those not yet onboarded.
Alongside its latest fundraising announcement, Abridge unveiled plans to expand its existing technology suite to include AI-driven medical coding capabilities. By automatically converting spoken interactions from patient consultations into precise medical codes, the company moves directly into competition with specialist startups such as CodaMetrix and even with Epic Systems itself, which offers similar functionality.
Abridge’s AI-powered medical scribing solution is currently employed by over 150 of the largest health systems in the United States, reflecting robust customer adoption and an accelerating pace of growth.
