What’s Fueling AI’s Growth

19th October 2023 – Contribution by Amy Thompson – Featured in The Imaging Wire

It’s no secret that the rapid growth of AI in radiology is being fueled by venture capital firms eager to see a payoff for early investments in startup AI developers. But are there signs that VCs’ appetite for radiology AI is starting to wane?….

….First up is an update by Signify Research to its ongoing analysis of VC funding. The new numbers show that through Q3 2023, the number of medical imaging AI deals has fallen compared to Q3 2022 (24 vs. 40).

• Total funding has also fallen for the second straight year, to $501M year-to-date in 2023. That compares to $771M through the third quarter of 2022, and $1.1B through the corresponding quarter of 2021.

On the other hand, the average deal size has grown to an all-time high of $20.9M, compared to 2022 ($15.4M) and 2021 ($18M).

• And one company – Rapid AI – joined the exclusive club of just 14 AI vendors that have raised over $100M with a $75M Series C round in July 2023….