How Abridge became one of the most talked about healthcare AI startups

When asked about the top AI startups in the health industry, one name that consistently comes up is Abridge, a company based in Pittsburgh. Abridge launched before OpenAI became well-known and LLMs became common in the tech industry.

In 2019, Shiv Rao, a cardiologist, pitched his startup idea to Andy Weissman, a general partner at Union Square Ventures. Rao described the concept as a combination of SoundCloud and RapGenius for medicine. Despite the humorous comparison to music hosting and lyrics transcription, Weissman found the idea intriguing.

Rao explained that doctors spend hours each day typing notes, leading to burnout and high levels of paperwork. He believed that AI could significantly reduce this workload for physicians. Weissman and other USV partners were impressed by Rao’s background as a physician and corporate venture capitalist, as well as his team of experts from Carnegie Mellon.

Abridge initially offered a basic transcription product for doctors to use during patient interactions. Over five years, the company has become a prominent AI-powered healthcare business, with large medical systems eagerly signing contracts with Abridge.

Hospitals are rapidly adopting Abridge, with glowing reviews from executives and doctors praising the software. The technology has proven to be a valuable application of generative AI, easing the burden of administrative tasks for physicians.

Dr. Lee Schwamm from Yale New Haven Medical System highlighted the ease of measuring the impact of AI-powered medical scribes and the importance of integration with Epic. Abridge’s support for multiple languages and recent integration with Epic have contributed to its success in the market.

While Abridge is currently leading the competition in AI-powered medical scribes, Schwamm noted that the industry is still evolving rapidly, with potential for new advancements from larger players in the future. Investors believe that Abridge is currently ahead in the race but acknowledge that the landscape could change as technology continues to advance. Due to this, a significant amount of funds have been flowing into the company.

In February, Abridge secured a $150 million Series C funding round, with Lightspeed Ventures as the lead investor, bringing the company’s valuation to $850 million.