Prime Highlight
- OpenEvidence has doubled its valuation to $12 billion after raising $250 million in a new funding round, reflecting strong investor confidence in its AI-driven healthcare platform.
- The startup’s rapid adoption among physicians highlights its growing influence as a trusted AI tool for clinical decision-making.
Key Facts
- OpenEvidence is used by nearly 40% of physicians in the United States and crossed $100 million in annualized revenue last year, with about 95% of new users joining through referrals.
- Founded in 2022, the company has raised around $700 million to date from investors including Thrive Capital, DST, Google’s venture arm, Nvidia, and the Mayo Clinic.
Background
OpenEvidence, a fast-growing health tech startup often called the “ChatGPT for doctors,” has doubled its valuation to $12 billion after closing a fresh funding round. The company raised $250 million in financing led by Thrive Capital and DST, according to information shared with CNBC.
The latest round marks a sharp rise in OpenEvidence’s value in a short time. Just a year ago, the company was worth $1 billion. In October, its value rose to $6 billion, and it has now doubled again. This growth shows strong investor trust in the company’s growth and business model.
OpenEvidence started in 2022 and offers an AI-powered chatbot made for doctors. The platform helps doctors make clinical decisions by using information from trusted scientific and medical journals. CEO Daniel Nadler said the tool is not trained on open internet sources or social media, which helps reduce the risk of inaccurate medical information.
Nadler said OpenEvidence is now used by nearly 40% of physicians in the United States, making it one of the most widely adopted AI tools in clinical settings. The company crossed $100 million in annualized revenue last year, driven largely by word-of-mouth growth. Nearly 95% of new users come to the platform through referrals from fellow physicians.
Unlike many AI startups, OpenEvidence relies mainly on advertising for revenue instead of subscriptions. Healthcare companies can promote their services through video ads on the platform, which Nadler said allows faster adoption, especially among smaller medical practices.
The company has raised around $700 million so far from investors including Google’s venture arm, Nvidia, Kleiner Perkins, Craft Ventures, and the Mayo Clinic. Despite growing competition from major AI players, Nadler said OpenEvidence’s focus on doctors and real-world clinical data gives it a strong edge.
Looking ahead, Nadler said the company plans to grow steadily while keeping a close watch on costs, with no immediate plans for an initial public offering.
