Mapping A.I. in Healthcare: Early Stage Startups VCs Should Keep An Eye On

Healthcare has the highest number of VC-backed artificial intelligence startups

In my previous article, I wrote about the broken healthcare system in the U.S. and I discussed how exactly A.I. will help lower the cost of healthcare for governments, insurance companies, and healthcare providers, which subsequently will reduce your medical insurance premiums.

In summary, these are the different ways A.I. will shape the future of healthcare:

  1. Data Analytics: Applying machine learning on the massive amount of medical data from healthcare providers and insurers to find new patterns between symptoms and diseases
  2. Drug Discovery: Applying machine learning to the research in academia as well as known chemical characteristics to find new candidates for new drugs, find patients for trials, etc.
  3. Diagnostics: Use machine learning to categorize symptoms, lab results, medical images, etc. to diagnose the diseases
  4. Administrative: Over 30% of the healthcare costs in the U.S. is associated with administrative tasks such as insurance claims, insurance pre-authorization, going after unpaid bills, negotiations between insurers and providers, appointments, record keeping, etc.
  5. Virtual Doctor/Nurse: Use A.I. to gather your symptoms and vital signs, pre-diagnose you and maybe refer you to a specialist and reduce the hospital visits.
  6. Lifestyle: Better nutrition and an active lifestyle will lead to a huge cut on healthcare costs, let chatbots inspire you to live healthier.
  7. Mental Health: Hundreds of millions of people suffer from some form of mental illness, moderate or severe, and many of them simply do not know of their illness or do not want to/cannot afford to see a psychiatrist. Chatbots may help to find patterns in the way they talk, react and pre-diagnose them or help them with treatment.

While there are already unicorns in this space, namely Flatiron Health, Benevolent, and iCarbonX, and many companies who have raised 10s of millions of dollars in funding, I was interested to map out the early stage startups in this space.

I screened more than 200 companies in the A.I. Healthcare space (thanks to CB Insights, Crunchbase Pro, YCombinator, and other sources) and filtered out the ones that:

  1. Raised Less than $10M in Total Funding
  2. Are Headquartered in the U.S.
  3. Are Active (and Not Acquired) Based on Social Media, Hiring, etc.
If you want to have access to the list and scores of startups, please get in touch and I will share it with you.

This left me with exactly 70 startups to work on. Then I scored all these 70 startups based on the below criteria (0–10 scale):

  1. Customers have a real problem?
  2. Lots of people have this problem?
  3. Healthy competition?
  4. High barrier to entry?
  5. The solution can make a profitable business?
  6. Traction?
  7. Is the timing right?
  8. Is the team capable?
  9. Current Investors?

Top Angel-Funded Startups:

1 — Billion to One (Score=436):

Category: Diagnostics — Funding: $120K — Where: SF Bay Area — YC Alumni.

From Billion To One’s Website

2 — ShiftDoc (Score=313):

Category: Administrative — Funding: $120K — Where: SF Bay Area — YC Alumni.

3 — zPREDICTA (Score=203):

Category: Drug Discovery — Funding: $120K — Where: SF Bay Area — YC Alumni — Great Oaks Ventures

4 — Glidian (Score=189):

Category :Administrative — Funding: ~$100K — Where: SF Bay Area — Alchemist Alumni.

5 — Macro Eyes (Score=180):

Category: Administrative — Funding: $100K — Where: Seattle, WA — Investors: Bill & Melinda Gates Foundation

Top Seed-Funded Startups

1 — Athelas (Score=660):

Category: Diagnostics — Funding: $3.6M — Where: SF Bay Area — YC Alumni — Investors: Sequoia, Dorm Room Fund

2 — Enzyme (Score=598):

Category: Administrative — Funding: $2M — Where: SF Bay Area — YC Alumni — Investor: Data Collective

3 — Viz (Score=445):

Category: Diagnostics — Funding: $9.6M — Where: SF Bay Area — Pejman Nozad @Pear Launchpad—Investors: AME Cloud Ventures, Danhua Capital

4— Darmiyan(Score=445):

Category: Diagnostics — Funding: $3.1M — Where: SF Bay Area — YC Alumni — Investors: Fenox Venture Capital, DHVC

5 — TwoXAR(Score=442):

Category: Drug Discovery — Funding: $4.3M — Where: SF Bay Area — StartX Alumni — Investors: Vijay Pande of Andreessen Horowitz

Medal, Spring Health, Envisagenics, VitaGene, Lively, Oncora Medical, BodyPort, Cardiogram, iQuity, BloomAPI, Ava, CareSkore, Kaia, Proscia, TechCyte, Atomwise, NarrativeDx, PulseData, Picnic Health, DocSync, CloudMedX, PotBotics, Eko Devices, LexiGram, TypeZero, Care Angel, VEDA Data, Saykara, Datalog

Top Series-A Funded Startups

1 — Qrativ (Score=543):

Category: Drug Discovery — Funding: $8.3M — Where: Cambridge, MA — Investors: Mayo Clinic, Matrix Partners

2 — NuMedii (Score=387):

Category: Drug Discovery — Funding: $5.5M — Where: SF Bay Area — Investors: Lightspeed, Claremont Creek

3 — Bay Labs (Score=294):

Category: Diagnostics — Funding: $5.5M — Where: SF Bay Area — Investors: Data Collective, Khosla, Greenbox

4 — NextHealth (Score=244): Various Products to Shift Patient Behavior To Reduce Cost For Insurance Companies

Category: Misc. — Funding: $9.5M — Where: Colorado — Investors: Norwest Venture Partners

5 — Jvion(Score=142):

Category: Data Analytics — Funding: $8.9M — Where: Georgia, LA — Investors: Unknown

Cogitavito, Care Predict, Buoy Health

Partner at DCVC ($2Bn VC firm) and author of “Super Founders”. #1 bestseller new release VC book on Amazon.