Total amount raised
$161.7 Millions
Latest funding date
Location
Augmedix has successfully raised funds through multiple rounds, culminating in its acquisition by Commure for $139 million in 2024. The company has garnered support from 24 investors, including notable names like HCA Healthcare and Redmile Group.
Keep reading to explore the intricacies of Augmedix's fundraising journey and the investors backing this innovative platform.
What Is Augmedix?
Augmedix, founded in 2012 by Ian Shakil and Pelu Tran, is a healthcare technology company based in San Francisco, California. The company operates in the Electronic Health Record (EHR), healthcare, hospital, and medical industries.
With an employee count ranging from 1001 to 5000, Augmedix leverages ambient AI to transform natural conversations into organized medical notes and structured data. This technology allows clinicians to focus more on patient care by reducing their administrative burden.
How Much Funding Has Augmedix Raised?
- Amount Raised: $16M
- Date: January 2015
- Lead Investors: DCM Ventures, Emergence Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's product offerings and scale its operations.
- Amount Raised: $17M
- Date: April 2016
- Lead Investors: Redmile Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the development of new AI-powered healthcare solutions.
- Amount Raised: $23M
- Date: December 2016
- Lead Investors: McKesson Ventures, OrbiMed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the company's technology and expand its market presence.
- Amount Raised: $19M
- Date: October 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and improve product offerings.
- Amount Raised: $25M
- Date: October 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's AI capabilities and market reach.
- Amount Raised: $15M
- Date: March 2021
- Lead Investors: Eastward Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational growth and product development.
- Amount Raised: $6.5M
- Date: November 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance AI-driven healthcare solutions.
- Amount Raised: $12M
- Date: April 2023
- Lead Investors: HCA Healthcare
- Valuation at Round: $1.60 per share
- Motivation Behind the Round: To achieve cash flow sustainability and develop AI-powered documentation products.
- Amount Raised: $25M
- Date: November 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and market expansion.
In total, Augmedix has raised $158.5M. The current valuation is Not publicly disclosed.
Key Investors
- HCA Healthcare
- Details: HCA Healthcare is one of the nation's leading healthcare providers, operating hospitals and healthcare facilities across the United States. The company is involved in the development of AI-powered ambient documentation products for acute care settings.
- Investment Focus Areas: Healthcare services, healthcare technology, patient care.
- Notable Investments: Not publicly disclosed.
- Redmile Group
- Details: Redmile Group is a San Francisco-based institutional healthcare investor. The firm specializes in investments in innovative healthcare solutions and technologies.
- Investment Focus Areas: Healthcare, life sciences, healthcare technology.
- Notable Investments: Not publicly disclosed.
- DCM Ventures
- Details: DCM Ventures is a venture capital firm that invests in early-stage technology companies. The firm has a global presence with offices in Silicon Valley, Beijing, and Tokyo.
- Investment Focus Areas: Technology, healthcare, consumer internet.
- Notable Investments: Bill.com, SoFi, Lime.
- Emergence Capital
- Details: Emergence Capital is a venture capital firm focused on early and growth-stage enterprise cloud companies. The firm is known for its investments in companies that transform the way people work.
- Investment Focus Areas: Enterprise cloud, SaaS, healthcare technology.
- Notable Investments: Salesforce, Zoom, Veeva Systems.
- McKesson Ventures
- Details: McKesson Ventures is the venture capital arm of McKesson Corporation, a global leader in healthcare supply chain management solutions. The firm invests in early and growth-stage companies that are driving innovation in healthcare.
- Investment Focus Areas: Healthcare technology, supply chain management, patient care.
- Notable Investments: Not publicly disclosed.
What's Next for Augmedix?
Augmedix stands at the cusp of significant growth opportunities, driven by its collaboration with HCA Healthcare to develop AI-powered ambient documentation products. This partnership aims to streamline hospital workflows and improve documentation processes, presenting a substantial market opportunity. The merger with Commure further amplifies Augmedix's potential, opening new avenues for growth and integration within a larger healthcare technology framework.
Future fundraising opportunities appear promising, with the company having the option to raise up to $5 million through an equity line of credit from Redmile Group. However, Augmedix does not anticipate needing additional equity issuances based on current operating plans. The growing trend of ambient AI in healthcare could attract further investment, positioning Augmedix for continued innovation and market expansion.
Despite these opportunities, Augmedix may face challenges such as ensuring interoperability with various EHR systems and navigating regulatory requirements. Competition from other AI companies in the healthcare sector could also intensify. Nonetheless, the company's strategic partnerships and focus on reducing clinician burnout through technology place it in a strong position to overcome these hurdles and achieve sustainable growth.
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