Augmedix Secures $19 Million Series B Funding to Accelerate Product Development with Automation Features

VCBeat (WeChat ID: vcbeat) has learned that on October 24, 2019, digital health company Augmedix announced the completion of a $19 million Series B financing round. Investors in this round included Redmile Group, McKesson Ventures, DCM Ventures, and Wanxiang Healthcare Investments.

This round of financing will be used to accelerate Augmedix’s product development, including automation features, and strategically expand its technology support services covering health systems and private clinics across China.

Augmedix is a digital health company founded in 2012 and headquartered in California, United States. The company specializes in providing technological services to healthcare institutions. Its Augmedix platform is powered by proprietary natural language processing technology and a team of medical documentation experts. This technology platform converts conversations between clinicians and patients into medical documentation in real time, enabling clinicians to focus on delivering essential patient care. The service covers more than 25 medical specialties and supports most electronic health record (EHR) systems.

To date, Augmedix has partnered with 15 national health systems, including Sutter Health, CommonSpirit Health, and US Oncology, helping more than 10% of clinicians in the United States combat burnout and improve productivity by over 30%.

Tom Rodgers, Senior Vice President and Managing Director of McKesson Ventures, stated, “Augmedix holds a unique advantage with its team of highly trained medical documentation specialists, who are increasingly leveraging artificial intelligence to deliver consumer-grade experiences for clinicians. This approach enables more accurate and timely documentation in the most cost-effective manner. We are confident that the Augmedix team will achieve its goal of reducing physician burnout and significantly improving their quality of life.”

Albert Chan, Digital Patient Experience Lead at Sutter Health, stated, “Augmedix extends our care teams in novel ways, providing support to clinicians across specialties ranging from primary care to dermatology and gastroenterology. This has helped us increase clinician face time with patients and improve clinical workflow efficiency.”

Manny Krakaris, CEO of Augmedix, stated, “We are grateful for the confidence investors have shown in Augmedix and are pleased with the industry’s adoption of our services. Our service stands out because it operates in real time and is driven by natural conversation, rather than cumbersome one-sided commands. The combination of our proprietary technology and expert team reliably delivers medical documentation of the highest quality, thereby alleviating the burden on clinicians. By making substantial investments in technology, we are able to continue advancing to the forefront of the medical documentation services sector, enabling us to effectively provide additional services and capabilities to our health system clients.”

McKesson is a healthcare services and information technology company dedicated to improving the performance of healthcare operations. Through solutions encompassing pharmaceutical and medical-surgical supply management, health information technology, and commercial and clinical services, McKesson helps its customers enhance their financial, operational, and clinical performance.

DCM Ventures is a U.S. venture capital firm founded in 1996 and headquartered in California. The firm favors investing in high-potential startups in healthcare, biotechnology, and financial services. DCM Ventures assists entrepreneurs in building world-class companies that ultimately transform how institutions and individuals use technology.

Wanxiang Healthcare Investments (WHI) is a corporate-backed venture capital group based in the United States, focusing on investments in medical technology and digital health. The firm believes that startups in the healthcare industry hold significant market potential and typically provides seed-stage and growth-stage financing to these companies.

(Compiled by Wang Fang)