AI Medical Scribe Startup Abridge Doubles Valuation to $5.3 Billion in Latest Funding Round

Abridge, an AI startup that automates medical note-taking, has doubled its valuation to $5.3 billion in just four months. According to the Wall Street Journal, the company secured a $300 million Series E funding round led by Andreessen Horowitz, with participation from Khosla Ventures. This investment follows a $250 million raise in February, which valued Abridge at $2.75 billion. Founded seven years ago by cardiologist Shiv Rao, Abridge is a leader in the growing AI-powered medical scribe market, thanks to its early entry and deep integration with Epic Systems, the dominant electronic health record software provider. The company's rapid growth is reflected in its recent financial metrics: in Q1, Abridge reported $117 million in contracted annual recurring revenue, a figure that includes all signed recurring contracts, even those not yet activated. Building on its success, Abridge announced plans to expand its services into the conversion of medical notes from patient appointments into AI-powered medical codes. This new offering will put Abridge in direct competition with companies like CodaMetrix and a similar feature provided by its partner, Epic Systems. Abridge's technology is already used by over 150 of the largest health systems in the United States, highlighting its significant market presence and the trust it has built among healthcare providers. With this latest round of funding, Abridge is well-positioned to continue its rapid expansion and innovation in the healthcare technology sector, addressing the increasing demand for efficient and accurate medical documentation and coding solutions.