(Reuters) - Healthcare AI startup Tennr said on Tuesday it has raised $37 million in a new funding round led by Lightspeed Ventures as it looks to expand its research and sales teams to meet the growing demand for its services.
The Series B funding valued Tennr between $200 million and $250 million, with participation from existing investors a16z and Foundation Capital, according to a source familiar with the matter.
WHY IT'S IMPORTANT
The demand for AI services that automate complex and repetitive tasks has increased in various sectors including healthcare as they save time and costs associated with hiring manpower. This has attracted interest from venture capital and private equity firms.
In the six months since its last funding round, Tennr has seen rapid customer growth, leading the company to seek additional capital, and bringing the total funding to over $61 million.
CONTEXT
Founded in 2021, Tennr provides AI solutions that help healthcare organizations automate clinical and operational tasks such as reading medical records and catching billing errors.
KEY QUOTE
"It's clear that Tennr's product is meeting a significant market need across the healthcare industry," Alex Kayyal, partner at Lightspeed said.