Healthcare AI Guy Weekly Newsletter | 6/27

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Highlights if you’ve only got 2 minutes…

AI 100: The most promising artificial intelligence startups of 2023

CB Insights just released this year’s AI 100 report — their list of the 100 most promising private AI companies in the world. This year’s winners are working on generative AI infrastructure, emotion analytics, general-purpose humanoids, and more. Out of the 100 winners, 8 were healthcare focused. Those below:

• Aqemia: AI-driven drug discovery

• Atomic AI: AI-driven drug discovery

• Atroposhealth: personalized real-world evidence for clinicians

• Generate: Biomedicines: generative biology platform to create new drugs

• Navina: AI platform for primary care

• Subtle Medical: AI-powered medical imaging

• Turbine: Simulation-driven oncology drug discovery

• XtalPi: AI-driven drug discovery

The top 100 companies have raised a combined $22B since 2019 - driven by OpenAI’s $13B worth of investments from Microsoft. Softbank and Sequoia China-backed AI startup, Xtalpi, is the 3rd most funded company on this list with $780M raised. Generate: Biomedicines is 7th, raising a total of $370M in 2021. (link)

Aledade raises $260M to invest in AI and expand clinician network

Aledade, which uses data analytics software to help independent doctors’ offices transition to value-based models, just achieved unicorn status through a $260M series F funding round, now valuing the company at $3.5B. Aledade raised more than $380M over the past year ($677M lifetime). The company's technology helps practices identify and better manage their most at-risk patients.

This latest round of capital will be used to “grow its network of independent clinicians and invest in technology and services,” specifically with an eye on acquisitions. Lightspeed, who led the round, shared its rationale for investing, which highlights multiple flywheels it sees Aledade benefitting from (network, engagement, and data): “Aledade’s continued technology and data investments lead to higher fidelity insights and more actionable clinical interventions.” I think this deal is only a sign of the beginning as more and more healthcare players raise capital to go big in AI, either by building out their own internal tech or by buying emerging players. (link w/out paywall)

AI agents: next frontier to access the web

The history of internet applications has continuously evolved, from the era of websites in 2000s to mobile apps in 2010s. Now, we’re on the verge of a new phase in web interaction: AI agents. Generative AI has unlocked the ability to access all human knowledge and computers through natural language queries. This enables widespread availability to once exclusive services such as personal assistants, therapists, personal coaches, content creation, coding etc. Most consumer applications will soon have an AI agent, and many new use cases will emerge. Some healthcare-related favorites below:

• Personal Assistant: Bill Gates said last month: “Whoever wins the personal agent, that’s the big thing, because you will never go to a search site again, you will never go to a productivity site, you’ll never go to Amazon again.” This includes someone who can book restaurants, doctor appointments, coordinate calendars, shop, book travel etc.

• Digital companion: Chatbots such as Character.ai, Replika, Caryn.ai are leading consumer Gen AI apps. They provide true conversational entertainment and companionship.

• Therapy / coaching: AI-powered apps will make therapy, coaching, mentorship much more affordable and scalable. One might even be able to select their favorite celebrity to be their personal coach.

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Miscellaneous 🔍

News, podcasts, blogs, tweets, resources, etc…

• AI helps detect childhood blindness (link)

• 20VC podcast with founder of Nabla, AI assistant for docs (link)

• FDA commissioner and manufacturers consider how to regulate ChatGPT, LLM tech (link)

• Pensieve AI - Chat with and ask Qs to any PDF document (link)

• Getting started with AI - JavaScript stack used by a16z for weekend projects. (link)

• AI Shark Tank: Marketing Against the Grain Podcast (link)

• Market map and analysis: Gen AI search companies (link)

• Amazon commits $100M to fund generative AI initiatives (link)

• What "GPT" actually means (link)

• Terence Tao, UCLA Mathematics Professor, anticipates 2026-level AI to be a reliable partner in various research fields (link)

• AI can improve two-way conversations between health plans, members (link)

• Substack post on generative AI in healthcare (companies implementing it, opportunities & challenges ahead) (link)

• Andrej Karpathy (OpenAI) inspiring words:

Deal Desk 💸 

Spotlight on latest capital raises, M&A and investments…

📈 Aledade: a tech-native network of primary care practices based in Maryland, raised $260M in Series F funding. Lightspeed Venture Partners led the round and was joined by Venrock, OMERS Growth Equity, Fidelity and Avidity Partners. (link)

📈 National Health Service (NHS): the U.K. government announced that it’s committing £21M ($26.75M in USD) to National Health Service (NHS) trusts, which can apply for funding to “accelerate the deployment of the most promising AI imaging and decision support tools” in hospitals across the country — to help diagnose patients more quickly for conditions such as cancers, strokes, and heart conditions. (link)

📈 Outbound AI: an AI-chat platform based in Seattle supporting revenue cycle automation raised $16M in seed funding led by Madrona Venture Group and SpringRock Ventures. (link)

📈 AvoMD: a no-code platform that helps clinicians build their own apps, raised $5M in seed funding. AlleyCorp led the round and was joined by various other healthcare investors. (link)

Tool Box 🧰

Latest on business, consumer, and clinical healthcare AI tools…

🔧 Dandelion Health: Dandelion Health, a startup offering a healthcare data platform that specializes in AI and precision analytics, announced today the launch of a new public service to rigorously evaluate the performance, fairness, and equity of health algorithms. The pilot program will focus on algorithms that make predictions for cardiology, using electrocardiogram waveforms, and measure their performance and bias across key racial, ethnic, and geographic subgroups. Dandelion has developed this program under a patient privacy-first, open-access model, to make it accessible to as many algorithm developers as possible at no cost. The company’s goal of becoming a public utility for AI validation is laudable, especially to address issues of racial, ethnic, and geographic bias. (link)

🔧 Dougall GPT: Dougall GPT, GPT technology for clinicians, allows providers to experiment with GPT technology, while also providing trusted sites and links to fact-confirm responses. (link)

AI Images of the Week 📸

Funny memes and pics from around the web…