*|MC_PREVIEW_TEXT|*

Bessemer Benchmarks | Notable Flow Builder
November 7, 2024
site logo

Together with

partner logo

“The biggest contributors to mistrust? Poor communication and lack of time spent with patients. On average, doctors interrupt patients within 20 seconds of beginning a visit. Docs have to be encouraged to sit down to talk with a patient, something is amiss. Simply put, it’s hard to trust someone when you don’t feel heard.”

Orthopedic Surgeon Dr. Ben Schwartz

Startups

Bessemer’s Key Benchmarks for Health Tech

Bessemer Venture Partners put out an update to its top-tier blog series on benchmarks that health tech startups can use to see how they stack up against the competition.

We won’t dive into the full industry overview, but here’s a look at a few of the key metrics Bessemer shared to illustrate how the health tech segment has evolved since last year.

Graduating is hard. Health tech “graduation rates” from Seed to Series A and B have fallen significantly compared to previous cohorts.

  • Of the companies closing Series A rounds, the median time it takes to reach that milestone is 50% longer in 2024 than prior years, and is longer in health tech than any other sector.

We’re so back. Although the funding environment remains challenging, the good news for those that are able to raise capital is that valuations have rebounded to peak levels.

  • “Phoenix” companies that have risen from the ashes of the market correction are commanding premium valuations in massive late stage rounds (see Equip and Maven), while frothy investments in AI startups are fueling an early stage boom.

The AI factor can’t be ignored. The share of health tech investment directed at AI-focused companies has increased by 9 percentage points in just two years – hitting 38% in 2024.

  • These startups are reaching 30-50x ARR multiples, with valuations 2-5x higher than their non-AI counterparts.

Services-as-Software is the new paradigm. These businesses use AI to automate workflows historically performed by humans, and benchmarks show an accelerated go-to-market trajectory compared to traditional SaaS models. 

  • Services-as-Software companies are reaching $10M ARR at unprecedented speeds as the industry rushes to test if they can deliver on their value promises, and the following chart has the full breakdown – at least for the readers that know their finance acronyms.

The Takeaway

Bessemer’s full post goes much deeper on the overall health tech landscape and the intricacies of AI Services-as-Software, but the four charts above give you a solid lay of the land. Bessemer remains as optimistic as ever on health tech heading into 2025, and it’s definitely impressive to see the resilience that these companies have showcased over the last year.

facebook twitter linkedin read story online

Overcome Your Credentialing Challenges 

Data inaccuracies and lengthy verifications can turn provider credentialing into a strategic barrier. Don’t let this be your bottleneck. Medallion presents 11 actionable tips to refresh your approach. Download the e-book today for smoother sailing in healthcare credentialing.

sponsor logo

A Look Under the Hood at Nabla

Nabla CEO Alex Lebrun put on a masterclass in transparency with his recent LinkedIn post exploring how Nabla leverages – and improves upon – OpenAI’s Whisper speech-to-text engine. The post dives into why Nabla annotated a unique dataset of over 7,000 hours of medical encounter audio to train its own model, and the improvements that were specifically developed to suppress hallucinations.

sponsor logo

Curate, Create, & Share at the Point of Care

It’s hard to find a more unique vantage point on AI than Playback Health co-founder Dr. Langer, whose role as the Chair of Neurosurgery at Lenox Hill allows him to actually use the platform he helped create. Head over to Dr. Langer’s latest blog to see how Playback is helping him spend more time caring for patients and enabling providers to “Curate, Create, & Share” at the point of care.

sponsor logo

The Wire

  • Notable Introduces Flow Builder: Notable bolstered its AI automation platform with the launch of Flow Builder, a low-code interface that allows users to build, customize, and deploy AI-powered agents across a range of operational workflows. The agents integrate directly with the EHR and other systems to perform manual tasks such as patient registration, scheduling, referrals, authorizations, coding, and care gap identification.
  • Medical Body Cams: Hospitals might start taking a page out of law enforcement’s playbook after an npj Digital Medicine study showed that body cameras can identify medication delivery errors with nearly perfect accuracy. UW researchers trained an AI-enabled wearable camera with 55 days of video data from two hospitals, 17 operating rooms, and 13 anesthesiology providers. The system was then tested using 418 drug draw events, and detecting vial swap mixups with 99.6% sensitivity and 98.8% specificity so that care teams could intervene before potential medical errors.  
  • Ayble Partners with Cleveland Clinic: Ayble Health and Cleveland Clinic are collaborating to bring virtual behavioral care and nutrition counseling to GI patients. Cleveland Clinic patients can now access educational content and connect with Ayble for explanations or goal setting assistance, then use the health system’s GI teams for any necessary care. The partnership aims to address clinician bandwidth constraints amid a mounting shortage of 1,600 gastroenterologists. 
  • Nabla Joins CHAI: Nabla is bringing its ambient AI expertise to the Coalition for Health AI (CHAI), joining the private-sector alliance to help develop industry best practices and address the pressing need for better model quality assurance, representation, and ethical use. Since its launch, Nabla has streamlined manual workflows for over 45k clinicians across 85 organizations, which tout the proprietary LLM’s ability to achieve high accuracy without needing customer data for model training purposes. 
  • LLMs for Sepsis Management: New research in NEJM AI showed that LLMs perform about as well as humans at chart abstraction for reporting sepsis-related quality measures. Researchers deployed an LLM that ingests FHIR data and produces a complete Severe Sepsis and Septic Shock Management Bundle (SEP-1) abstraction, achieving agreement with human abstractors in 90 out of 100 quality measure category assignments. That was enough for the authors to conclude that AI offers at least a cost-effective supplement to manual reporting.
  • Thrive + Function: Arianna Huffington’s Thrive Global is teaming up with social media’s favorite preventive diagnostics platform Function Health on the first “personalized and proactive health testing benefit.” Participating employees will skip Function’s 300,000 person waiting list and are eligible for over 100 lab tests, which a Thrive coach will then use to inform guided sleep, exercise, and mental health, and nutrition advice.
  • Hello Patient AI Agents: Hello Patient emerged from stealth with $6.3M in seed funding to bring medical practices generative AI phone agents that automate patient-facing communication and non-medical workflows like scheduling. The HIPAA-compliant agents capture both structured data and “institutional dark matter,” information previously confined to post-its, whiteboards, and staffers’ heads.
  • Measuring Digital Health ROI: Findings from a Panda Health survey of 75 hospital leaders indicate that improving patient outcomes is the most important ROI measurement for digital health solutions. The three highest priority ROI measurements were improved patient outcomes (61% ranked it first), patient experience (47% it ranked second), and improved quality measures (39% it ranked third).
  • Walgreens Healthcare Roadmap: Walgreens President of U.S. Health­care Mary Lan­gows­ki shared some great insight into the drugstore’s turnaround strategy with Endpoints News. Langowski’s game plan has so-far revolved around addition through subtraction, with plans to close 1,200 locations over the next three years and offloading its position in Vil­lageMD. “A lot of what I’ve focused on in the first six months, is really, it’s okay to stop stuff. What are we gonna stop?” 
  • CredibleMind Series A: CredibleMind locked in a $7.5M Series A funding round to scale its mental wellbeing platform across more health plans, employers, and community-based public health agencies. The fresh funds were also earmarked for advancing CredibleMind’s AI data engine, which curates and serves expert resources across 100+ mental health topics.

K Health’s First-of-its-Kind AI Knowledge Agent

K Health’s AI Knowledge Agent is a first-of-its-kind GenAI system purpose-built for the clinical setting, with a familiar feel hiding some major innovation under the hood. Discover how the AI Knowledge Agent is bringing new levels of personalization to answering patient medical questions and changing what it means to have a “digital front door” in the process.

sponsor logo

Bridging Care Gaps for Underserved Populations

Is your health system, rural health clinic, or federally qualified health center struggling to reach patients with obstacles to receiving in-person care? This Clear Arch Health whitepaper explores how combining RPM with VBC can help facilitate proactive interventions, address social determinants of health, and get the most out of new CMS reimbursement pathways.

sponsor logo

Level Up With the BPM Pro 2

Withings Health Solutions is leveling up remote monitoring programs with the BPM Pro 2 – the first cellular blood pressure monitor to collect Patient Insights and streamline provider operations. Discover how the BPM Pro 2 is giving time back to care teams by delivering the context behind each measurement.

sponsor logo

The Industry Wire

  • Trump’s potential healthcare impact.
  • Global cancer cases and deaths will hit 35.3M and 18.5M by 2050. 
  • MGB expands hospital at home to homeless shelters.
  • Nurse burnout tied to worse care quality, safety, and satisfaction.
  • 15% of hospital staff got COVID boosters in late 2023 and early 2024.
  • Providence Alaska bedside nurses protest telenurses.
  • CMS: MSSP generated $2.1B in 2023.
  • First Optum-branded primary care clinic launches.
  • Teen caffeine overdose ED visits nearly double.
  • UnitedHealth emails reveal debates over cutting doctor comp.

SHARE THE WIRE

Share Digital Health Wire
Spread the news & help us grow ⚡
Refer colleagues with your unique link and earn rewards.
Share the Wire
Or copy and share your custom referral link: https://digitalhealthwire.com/subscribe?rh_ref=*|RH_CODE|*&sl_campaign=MF262e8ab221be&utm_source=email
You currently have *|RH_REFS_4|* referrals.