AI Medical Service, World’s First Real-Time Endoscopy AI Developer, Secures $42.9M Series B and Files for IPO

VCBeat has learned that on October 4, 2019, AI Medical Service, an AI-powered medical services company and the world’s first developer of real-time endoscopic artificial intelligence, announced the completion of a $42.9 million Series B financing round. Investors included Globis Capital Partners, World Innovation Lab (WiL), Sony Innovation Fund, and IGV (Innovation Growth Ventures), along with additional third-party grants.

It is reported that in the final round of financing in August 2018, Incubate Fund provided $9 million in funding to AI Medical Service, bringing the company’s total fundraising to approximately $57 million since its establishment in 2017.

AI Medical Service plans to utilize the funds to promote clinical trials, further develop distribution channels, acquire expert talent, invest in equipment, and expand overseas. Through continued technological development, the company aims to accelerate regulatory approvals and contribute to the advancement of global endoscopic medical services.

Dr. Tomohiro Tada, CEO of AI Medical Service Inc., stated, “Our company was founded with the initial aim of addressing challenges associated with endoscopic examinations in clinical settings. In January 2018, we collaborated with the United States Association for Medicine to publish the world’s first article on AI for gastric cancer. Since then, our research team has published numerous scientific papers on AI applications for esophageal cancer, colorectal cancer, capsule endoscopy, and other areas. To accelerate the commercialization and societal deployment of these products, we will make effective use of the raised funds. As articulated in our founding philosophy, we are committed to contributing to the advancement of endoscopic medical treatment worldwide.”

Masa Matsumoto, General Partner at WiL, stated, “Endoscopic therapy is a medical field that warrants broader societal adoption, as it enhances the accuracy of disease diagnosis. However, the industry faces major obstacles, including prolonged analysis times and a shortage of human resources. AI Medical Service, which provides AI solutions for endoscopy, collaborates with many leading medical institutions in Japan and possesses the largest repository of endoscopic images and academic publications. I believe AI Medical Service will become one of the world’s leading companies, given the high barriers to entry and limited number of players in this market, as well as the company’s strategic focus on the global market from its inception.”

Tsuchikawa, Chief Investment Officer of the IGV Sony Innovation Fund, stated: “AI Medical Service not only possesses outstanding software engineering capabilities but also collaborates with leading experts in the field of endoscopy, who have made significant advancements in both research and technology. We firmly believe that AI Medical Service will provide breakthrough solutions for various medical institutions and endoscopists, thereby raising the standard of care in the global market.”

AI Medical Service, Inc. collaborates with approximately 80 medical institutions in Japan, representing the field of gastrointestinal endoscopy, to research and develop AI-powered endoscopes. Its research achievements have been widely recognized by experts worldwide, including at Digestive Disease Week (DDW), the world’s largest gastroenterology association.

(Compiled by Ning Chen)