The AI Healthcare Gold Rush: $1.29B Raised in September Alone

FEATURED STARTUP ANALYSIS

The AI Healthcare Gold Rush: $1.29B Raised in September Alone

Hey everyone! We’re trying something new. Starting this month, I’ll be giving you a quick breakdown of the biggest funding rounds in AI healthcare startups.

Once a month, I’ll analyze the previous month’s investments, highlight the top players, and show you where the money is flowing.

September was a big one, with $1.29 billion raised across 38 companies. After analyzing the data, a few standouts emerged: ArsenalBio secured $325M for cutting-edge cancer treatments, Superluminal Medicines landed $120M for AI-driven drug discovery, and Mendaera raised $73M for precision surgical robotics.

The big bucks went to drug discovery, followed by diagnostics and operational efficiency. The U.S. dominated, grabbing 76.7% of total funds, but I’ve noticed Europe and Asia making strong moves too.

Curious about the full breakdown? Access the free report here: Full Article

Lastly, if your AI Life Science company has raised money and we missed it, make sure to let us know!

FEATURED RESEARCH

FDA’s AI Approval Process Has a Serious Blindspot

A review of 692 FDA-approved AI medical devices from 1995 to 2023 revealed major gaps in reporting. Only 3.6% of devices included race or ethnicity data, while socioeconomic information was reported for just 0.9%.

Even more concerning, 81.6% didn’t mention the age of patients tested, and 62.9% left out sample sizes entirely.

Why it matters: AI tools rely on diverse data to work across different patient populations.

Without that diversity, algorithms could lead to biased outcomes — especially for minority and low-income groups who are already underserved in healthcare.

The numbers speak: Of the devices reviewed, only 9% included post-market studies to assess real-world performance, and fewer than half (46.1%) provided detailed performance results.

This makes it tough for healthcare professionals to assess how these devices will perform in practice.

What needs to change: AI in healthcare has immense potential, but better reporting standards are essential.

The FDA should ensure these tools are thoroughly tested on diverse populations to prevent health disparities from getting worse.

For more details: Full Article

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Funds Raised

ONCOLOGY

Inside VieCure’s $45M Mission to Transform Oncology with AI

VieCure has just secured $45 million in funding to expand its AI-driven platform for community oncology.

Northpond Ventures led the round, and they’ve also brought on healthcare veteran Richard Daly as the new chairman of the board.

What’s Halo Intelligence? Halo Intelligence is VieCure’s AI-powered platform that helps oncologists manage the complexity of cancer treatment.

It brings together patient data like genomics, treatment responses, and even wearable data to give real-time insights for personalized care.

Right now, more than 18,000 patients are being supported by the platform every day.

Why it matters: With cancer care becoming more data-driven, community oncologists face a huge challenge in managing all that information.

VieCure’s Halo platform simplifies this by turning data into actionable insights, helping doctors make the right call for each patient.

With this new funding, VieCure plans to expand and make AI-driven cancer care more accessible across the country, ensuring better outcomes for patients and making doctors' lives easier.

For more details: Full Press Release

💰 3 Other funded companies

1. Integrated Biosciences raised $17.2 million in seed funding led by Sutter Hill Ventures to accelerate its drug pipeline development targeting age-related diseases using synthetic biology and AI. [Link]

2. Vienna-based Flinn.ai raised €10 million in a round led by Cherry Ventures to expand its AI-driven platform for automating medtech quality and regulatory compliance processes. [Link]

3. Phare Bio received up to $27M from ARPA-H to boost its AI-driven antibiotic discovery platform and develop new treatments to combat antimicrobial resistance. [Link]

New Partnerships

BREAST CANCER

Owkin Partners with AstraZeneca to Transform BRCA Testing with AI

Owkin has teamed up with AstraZeneca to develop an AI-powered tool that will pre-screen for gBRCA mutations in breast cancer patients.

This innovative solution is expected to reduce the testing process from months to under an hour, significantly speeding up care for high-risk patients.

How it works: The AI tool uses digitized pathology slides to detect BRCA mutations, eliminating the need for additional tests and lengthy processes.

By leveraging existing patient materials like H&E slides, it helps oncologists and genetic counselors quickly identify patients at risk and incorporate the results into treatment plans without delays.

Why it matters: BRCA mutations greatly increase the risk of breast and ovarian cancers. Despite guidelines recommending broader testing, access remains inconsistent, and many patients miss out on essential tests.

Owkin’s solution, developed through the French PortrAIt consortium, aims to improve access to BRCA testing across Europe by 2030, helping thousands of patients benefit from earlier and more personalized care.

Kristina Rodnikova from AstraZeneca emphasized the impact: "This collaboration addresses the unmet need of identifying BRCA mutations faster, improving patient outcomes."

For more details: Full Press Release

🤝 3 Other collaborations shaping the future

1. Lundbeck has partnered with Charles River Laboratories to leverage its AI-driven Logica platform for discovering new treatments for brain disorders, aiming to optimize small molecules and improve drug design efficiency. [Link]

2. Medtronic and Siemens Healthineers are partnering to integrate Siemens' robotic X-ray with Medtronic's AiBLE spine surgery platform for enhanced imaging and co-marketing. [Link]

3. WellSpan Health, in partnership with Hippocratic AI, has introduced a new AI healthcare agent to enhance patient access and screening, starting with colorectal cancer screenings for underserved, multi-lingual populations. [Link]

Milestone Moments

⚡4 Product launches, 2 regulatory approval

1. Komodo Health has launched two generative AI tools, MapAI and MapExplorer, to help healthcare professionals quickly analyze data from its Healthcare Map, simplifying insights generation and speeding up decision-making without needing coding expertise. [Link]

2. Avo launched Ask Avo, an EHR-integrated AI tool providing real-time clinical advice and task automation, with early adopters like SUNY Downstate. [Link]

3. PocketHealth launched AI-powered tools for personalized cancer risk assessments and mammogram booking, focusing on newly eligible women in Ontario after the lowered self-referral age. [Link]

4. Recursion has received FDA clearance for its investigational new drug (IND) application for REC-1245, an AI-identified RBM39 degrader targeting biomarker-enriched solid tumors and lymphoma, with Phase 1/2 trials set to begin in late 2024. [Link]

5. Adnexus Biotechnologies launched Sutra™, an AI platform for accelerating drug discovery and infectious disease research, focusing on new therapeutic targets and treatment optimization. [Link]

6. BPGbio received FDA Rare Pediatric Disease designation for BPM31510IV, its AI-identified treatment for primary CoQ10 deficiency, advancing their potential for priority review and treatment of this rare mitochondrial disorder. [Link]

Opinion and Perspectives

AI IN HEALTHCARE

AI Won’t Save Healthcare Without Nurses

Nurses are cautiously optimistic about AI’s role in healthcare, according to a recent survey of 7,200 nurses conducted by McKinsey and the American Nurses Foundation.

While many see AI as a way to reduce workload, 61% are concerned about trusting AI’s accuracy, and nearly half worry it could replace human interaction in patient care.

AI’s promise: 64% of nurses want to see more AI tools in their work. The potential benefits are clear — AI could help free up 20% of a nurse's time, allowing them to focus more on patient care.

Nurses aged 30 to 39 are particularly eager, with 71% expressing interest.

The concerns: However, there’s hesitation. 23% of nurses are uncomfortable with AI’s potential impact on patient care, citing a lack of transparency and trust in these tools.

Only 37% of nurses under 30 feel confident AI will improve the quality of care, reflecting skepticism among younger professionals familiar with AI’s risks.

What needs to happen: Nurses want a seat at the table. 73% of respondents emphasized the need for nursing input in designing AI tools, along with clear guidelines on their use.

Including frontline healthcare workers in AI development will ensure technology supports, rather than replaces, the human touch in healthcare.

For more details: Full Article

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