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A16z joins $126m series C for healthtech firm Hippocratic AI

Hippocratic AI has raised US$126 million in a series C round led by Avenir Growth, giving the Palo Alto-based healthcare AI firm a valuation of US$3.5 billion.

Investors in the round include CapitalG, General Catalyst, Andreessen Horowitz, Kleiner Perkins, Premji Invest, Universal Health Services, and several health systems.

The company, which develops generative AI agents for healthcare applications, said the funds will be used for global expansion, product development, and potential acquisitions.

Hippocratic AI reported that it works with more than 50 healthcare organizations across six countries, including Cleveland Clinic, Northwestern Medicine, and Guy’s & St Thomas’ NHS Trust.

Hippocratic AI has now secured a total of US$404 million in funding since its founding.

🔗 Source: Hippocratic AI

🧠 Food for thought

Implications, context, and why it matters.

Hippocratic AI’s 115 million interactions lack disclosed regulatory clearance or peer-reviewed validation

  • Hippocratic AI reports 115 million patient interactions but has not said whether it has U.S. Food and Drug Administration (FDA) clearance, the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) approval, or European CE marking. These clearances shape adoption risk and reimbursement potential. The FDA has cleared 903 AI-enabled medical devices as of August 31, 2024 1, mostly through the 510(k) pathway 1.
  • Only 55.9% of FDA-cleared AI devices include clinical performance studies 1, with most using retrospective designs 1 rather than prospective trials. The company has not shared peer-reviewed, prospective validation, so its 115 million interactions could come from safe, approved use or from pilots that lack approval. Generative AI voice agents that give medical advice or triage would count as Software as a Medical Device (SaMD) when intended for medical purposes 2.

EHR integration vendors could benefit from Hippocratic AI’s global rollout if gaps persist

  • Hippocratic AI works with groups in six countries. That creates room for third-party tools that handle Electronic Health Record (EHR) links. Others can offer telephony connectors, localization, and compliance controls. It is not clear whether Hippocratic AI connects with Epic or Cerner, which is now part of Oracle. Epic is speeding up AI across its platform 3 and has a Microsoft partnership 3.
  • Teams face hurdles with EHR interoperability and workflow fit 4. Data standards and real-time performance also matter 4. Firms that bridge gaps for non-Epic sites or international markets can target buyers that adopt Hippocratic AI. Generative AI voice agents need safety checks that escalate urgent cases 2.

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