AI startups in healthcare are taking groundbreaking strides in terms of investments to propel growth. From life-saving medical discoveries to remote patient monitoring and advanced clinical trials, AI generates excitement among investors seeking to invest in innovative health tech startups.
Leading digital health executives and market research firms predict that investments in healthcare AI will surge in 2024, and generative AI startups are more likely to take center stage when garnering funding.
In this blog, we will see five leading-edge startups using AI to improve healthcare. We will also explore why investors should ramp up investments in healthcare AI this year.
Investing in Health & Wellness AI Startups: The 2024 Focus
Leading research firms report that the global market size of AI in healthcare, valued at USD 22.45 billion in 2023, is expected to reach USD 102.7 billion by 2028. Healthcare AI startups are in hot demand, and this space has ample opportunity for investors.
Here are a few areas of healthcare AI where promising startups are emerging, holding enormous opportunities for investors.
- Patient data and risk analysis
- Medical imaging and diagnostics
- Precision medicine
- Drug discovery
- Lifestyle management and monitoring
- In-patient care and hospital management
5 Life-Saving AI Startups and Their Investment
1. Acorai
Acorai is a Swedish medical device manufacturing startup founded in 2019. The startup is developing a device for heart failure management through non-invasive intracardiac pressure monitoring (ICPM) to help reduce hospitalizations and readmissions.
The cardiac monitoring device being developed by Acorai will facilitate the non-invasive measurement of mean pulmonary artery pressure (mPAP) by leveraging machine learning analysis.
After having demonstrated promising results in their Swedish 350-patient Pilot Study, Acorai received a Breakthrough Device Designation from the FDA in August 2023. In November 2023, Acorai secured a €2.3m grant with a follow-on €10m investment offer from the European Innovation Council (EIC) Accelerator.
ABOUT: heart failure management platform
MARKET: medical devices manufacturing, health platform
TYPE: machine learning, connected device, big data, artificial intelligence
TOTAL FUNDING: €1 million to € 2.5 million
LOCATION: Sweden
2. Causaly
Causaly is a London-based healthtech startup that builds AI solutions for accelerating biomedical research and drug discovery. Founded in 2017 by academics in biomedicine, Causaly deploys AI to rapidly read, understand, and interpret vast databases of biomedical knowledge from more than 30 million biomedical publications in seconds.
In July 2023, the startup closed $60m in Series B funding led by ICONIQ Growth. The investment brings the total funding raised to $93 million, which will be utilized to extend Causaly’s product lead and expand commercial relationships, enabling breakthrough therapeutic innovations faster than ever.
ABOUT: AI platform for accelerating biomedical research
MARKET: biomedical scientists and researchers, life sciences, and pharma companies
TYPE: big data analytics, artificial intelligence
TOTAL FUNDING: $93 million
LOCATION: United Kingdom
3. SpectrumAi
SpectrumAi is a California-based digital health startup founded in 2021 that develops innovative solutions to improve autism care. The company uses AI to improve data capture and bring objective measurement to applied behavior analysis (ABA) therapy in the autism space.
In March 2023, SpectrumAi raised $20 million in Series A funding, with investment led by CVS Health Ventures. The investment is expected to promote SpectrumAi’s use of disruptive technology and value-based care to address the significant data void in applied behavior analysis.
ABOUT: AI-based behavioral analysis platform for improving autism care
MARKET: front-line technicians and clinicians, healthcare providers, child-care specialists
TYPE: artificial intelligence, data, and behavioral analysis
TOTAL FUNDING: $20 million to $29 million
LOCATION: California, United States
4. Tonal
Tonal is a digital strength training startup that uses AI to revolutionize fitness and strength training for its customers. Tonal’s AI-powered smart home gym system tracks health metrics such as weight lifting, heart rate, and exercise intensity to provide action-based feedback to users.
Tonal’s wall-mounted, connected smart mirror with built-in electromagnetic motors offers up to 200 pounds of resistance. Hence, it’s ideal for new and experienced weightlifters who seek personalized guidance from strength training experts without leaving the comfort of their homes.
The startup crossed unicorn status after raising $250 million in its latest funding round, valuing the company at $1.6 billion.
ABOUT: AI-powered at-home fitness startup, digital full-body motion analysis and training system
MARKET: fitness enthusiasts, at-home fitness consumers, streamed fitness classes
TYPE: artificial intelligence, machine learning, real-time data analytics
CURRENT STARTUP VALUE: $1.6 billion
LOCATION: California, United States
5. Leucine
Founded in 2019, Leucine enables pharmaceutical companies to leverage AI to digitize their manufacturing workflows and replace traditional paper-based compliance procedures with a digital-first approach. The platform makes manufacturing compliance less onerous for pharma companies so they can keep pace with drug innovation and ensure their medicines reach patients faster.
In October 2023, the New York-based startup closed $7 million in Series A funding led by strategic investor Ecolab Inc. and joined by a group of VCs and angel investors. The startup plans to utilize the funding to refine its AI capabilities and increase its reach to more customers.
ABOUT: AI-first platform to mitigate compliance risks in pharmaceutical manufacturing
MARKET: new biotech firms, pharmaceutical giants
TYPE: artificial intelligence, large language models (LLMs), digital twin
TOTAL FUNDING: $7.68 million
LOCATION: New York, United States
The Next Step: Finding The Right AI Startups In Healthcare To Invest In
It’s common for investors to have a high bar for funding when it comes to backing tech startups. Companies with proven modalities and a clear pathway to profitability garner investor traction quickly. How and where can you find the best startups that are notable investors by turning hype into reality?
Enter Start3r – a pioneering digital platform that takes the guesswork out of matching investors with best-fit startups. By creating a profile on our investor matching platform, you can find the right-sized startups that match your investment criteria. In addition to looking up eligible startups, you can use Start3r to check out the tools and resources designed to help investors like you.
So why wait – sign up now and see how Start3r simplifies your startup discovery process.
Share this post
