Rad AI Raises $60M in Series C, Revolutionizing Radiology with AI-Powered Workflow Solutions

Healthcare AI Startup Rad AI Secures $60 Million in Series C Funding

Rad AI, a healthcare startup specializing in generative AI for radiologists, has successfully closed a Series C funding round, raising approximately $60 million. The round, led by Transformation Capital, values the company at $525 million, marking a significant milestone in Rad AI’s growth trajectory.

Founded in 2018, Rad AI has quickly established itself as a leader in applying artificial intelligence to streamline radiologists’ workflow. This latest funding round comes just seven months after the company’s $50 million Series B round, which was led by Khosla Ventures in May 2024.

Rad AI’s technology focuses on automating routine tasks for radiologists, including report generation and patient follow-up management. This approach aims to increase efficiency and reduce burnout among healthcare providers, setting Rad AI apart from competitors who primarily focus on AI for imaging analysis.

The company’s rapid growth has caught the attention of venture capital firm TRAC, which recognizes Rad AI as a potential future unicorn. TRAC’s algorithm suggests a one-in-five chance of Rad AI reaching a $1 billion valuation, underscoring the startup’s significant market potential.

Led by CEO Doktor Gurson, a seasoned tech entrepreneur, and co-founded by Dr. Jeff Chang, noted as the youngest US radiologist in history, Rad AI claims to work with nearly half of all US health systems and 9 of the 10 largest radiology practices in the country.

As the healthcare AI market continues to expand, Rad AI faces competition from companies like Sirona Medical, which recently raised $42 million in its own Series C round. However, Rad AI’s unique focus on operational tasks positions it favorably in this growing sector.

Neither Rad AI nor Transformation Capital have provided official comments on the funding at this time.