Healthcare technology startup Commure raises $200M ahead of IPO

Commure Inc., a startup that develops software for healthcare organizations, has raised $200 million in funding from General Catalyst.

The company announced the investment today. The capital was provided by General Catalyst’s Customer Value Fund, which helps startups finance sales and marketing programs. Commure earlier raised $500 million in funding from Nvidia Corp., Y Combinator and other prominent investors.

“This funding lets us accelerate our reach and impact in healthcare with capital aligned to performance,” said Commure Chief Executive Officer Tanay Tandon. “We’re focused on expanding access to our technology across the U.S. healthcare system.”

San Francisco-based Commure offers more than a half-dozen software products geared towards the healthcare sector. According to the company, its applications are used by over 130 health systems in the U.S. Those organizations have made Commure’s technology available to hundreds of thousands of medical professionals.

Several of the company’s applications use artificial intelligence to automate manual work for users. One service, Ambient AI, can record a physician’s patient conversations and automatically generate medical notes. It’s also capable of syncing those notes to each patient’s electronic health record.

A significant amount of healthcare data is stored in the form of medical codes, short strings of characters that each describe a different disease or treatment. Such codes remove the need to write detailed natural language descriptions. Their standardized format also helps make clinical datasets more consistent. According to Commure, its Ambient AI tool can automatically generate codes based on medial notes to spare clinicians the hassle.

The company offers two editions of Ambient AI that combine its core automation features with human assistance. According to the company, the product tiers provide access to medical documentation experts who can help physicians with tasks such as writing patient referrals.

For contact center teams, Commure offers three AI agents designed to automate common patient interactions. One answers billing inquiries and sends appointment confirmations. The other two agents perform related tasks such as sharing educational materials with patients.

Commure’s other software products span a range of use cases. Healthcare organizations can use them to manage billing tasks, process patient referrals and create a self-service web portal for booking doctor’s appointments. Furthermore, Commure sells a line of medical devices that physicians can use to remotely monitor a patient’s condition.

Axios reported today that the company’s products generate more than $200 million in annual revenue. Commure expects to achieve a positive cash flow, an important step toward profitability, by the end of 2026. It plans to file for an initial public offering the following year.

The company could reportedly raise another round of funding before the IPO. Additionally, Commure plans to launch a tender offer that will give investors an opportunity to share some of the shares before its stock market listing. 

Photo: Pixabay