SAN FRANCISCO, CA – Ambience Healthcare, a leading provider of ambient AI solutions for healthcare, has announced a significant $243 million Series C funding round. This latest investment elevates the company's valuation to $1.25 billion, underscoring strong investor confidence in the rapidly expanding healthcare AI market. The round was co-led by prominent venture capital firms Oak HC/FT and Andreessen Horowitz (a16z).
Existing investors, including the OpenAI Startup Fund, Kleiner Perkins, and Optum Ventures, also participated in the Series C. New investors such as Frist Cressey Ventures, Town Hall Ventures, Smash Capital, Georgian, and Founders Circle Capital joined the round. This funding brings Ambience Healthcare's total capital raised to over $345 million, following a $70 million Series B round in February 2024.
Founded in 2020 by Mike Ng and Nikhil Buduma, Ambience Healthcare specializes in AI-powered platforms designed to reduce administrative burdens on clinicians. Their technology, built on fine-tuned large language models (LLMs), focuses on ambient documentation, coding, and clinical documentation integrity (CDI). The platform transcribes patient-clinician conversations, prepares charts, and automates backend tasks, allowing healthcare providers to concentrate on patient care.
The company's solutions are currently deployed in major health systems, including Cleveland Clinic, UCSF Health, Houston Methodist, and Memorial Hermann. Cleveland Clinic, notably, entered an exclusive five-year partnership with Ambience after a rigorous six-month pilot that evaluated multiple ambient scribe vendors. The platform integrates seamlessly with major Electronic Health Record (EHR) systems like Epic, Oracle Cerner, and athenahealth.
The newly secured capital will be primarily used to expand Ambience Healthcare's reach to more health systems across the country and accelerate the development of new products. As stated in a recent social media post by investor Mamoon Hamid, "The real test for healthcare AI isn’t the demo. It’s the day-to-day, where precision and reliability matter most. @AmbienceAI is built for that." The company aims to make administrative tasks invisible and data accurate by default, enhancing the effectiveness of care teams.