Startups & Funding
Medical AI platform OpenEvidence doubles valuation to $12 billion
OpenEvidence raised $250 million at a $12 billion valuation, doubling its previous valuation while scaling its AI-powered medical information platform to 18 million clinical consultations in December.
On Wednesday, OpenEvidence announced that it has raised $250 million in a Series D funding round, a late-stage venture capital round that values the company at $12 billion. The financing was co-led by Thrive Capital and DST. This new valuation represents a doubling of the $6 billion valuation from the company’s previous raise in October, when it secured $200 million in a round led by GV. According to the company, the latest transaction brings its total raised capital to $700 million.
The company’s list of backers includes:
- Sequoia
- Nvidia
- Kleiner Perkins
- Blackstone
- Bond
- Craft Ventures
- Mayo Clinic
OpenEvidence operates an AI-powered medical information platform. While the platform is similar to what WebMD was for the previous internet generation, it is specifically geared toward doctors rather than the general public. The company says that the free, ad-supported platform served 18 million clinical consultations from verified healthcare professionals in the U.S. in December alone. This clinical usage represents an increase from about 3 million searches per month a year ago. Alongside this growth in clinical consultations, the company announced that it has surpassed $100 million in revenue.
This expansion has occurred alongside broader industry moves into the medical space by major artificial intelligence developers. OpenEvidence is somewhat in competition with Anthropic’s Claude for Healthcare, which is intended for patients, payers, and providers. Meanwhile, OpenAI has introduced its own health products aimed more at consumers. Despite these entries, venture capitalists who have backed OpenEvidence are apparently not worried about the new health information products from OpenAI and Anthropic, choosing instead to continue backing the specialized medical platform.
Why it matters
The valuation jump for OpenEvidence highlights investor appetite for specialized AI platforms that demonstrate significant revenue and usage metrics, even as general-purpose AI developers enter the healthcare sector.