One investor called the company “the first to effectively" use artificial intelligence and machine learning to solve healthcare's optimization problems "with a clear ROI."
California-based analytics and artificial intelligence (AI) firm Qventus is touting a successful Series B fundraising round today. The new batch of investment totals $30 million and was led by Bessemer Venture Partners.
The company, founded in 2012 by Brent Newhouse, Ian Christopher, and Mudit Garg, was spun out of famed incubator YCombinator in 2015. Its software is built to analyze and optimize hospital workflows, allowing health systems to cut down on waste and deliver care to patients in a timely manner.
“Health systems have increasingly complex operations; for them, operational excellence depends on empowering real-time decision making by thousands of disparate employees,” Garg, Qventus’s CEO said in a statement.
Funders had high praise for the startup in its official announcement. Stephen Kraus, a partner at Bessemer Venture Partners, called the company “the first to effectively use [artificial intelligence and machine learning] to solve this real operational need in hospitals with clear ROI.”
Qventus’s technology is already in use at a number of hospital networks across the continent, including Mercy, Emory, and NewYork-Presbyterian. The latter’s investment arm, NewYork-Presbyterian Ventures, also participated in the funding round.
“We look forward to expanding the positive impact of intelligent automation in healthcare, and to using technology to improve patient length of stay and other operational advancements,” NewYork-Presbyterian’s associate chief transformation officer David Tsay, MD, PhD, said in the announcement. In 3 years of deployment, Qventus says its suite has been deployed for nearly 4 million patient encounters.
Garg said the new funding will help Qventus further expand its decision-making offerings. To date, the company has now raised over $40 million. Previously, it received $13 million in its Series A round, completed in 2016 and led by Mayfield Fund and Norwest Venture Partners—both of which also contributed this time around.