Carta Healthcare, which uses artificial intelligence to help health systems reduce costs, announced Wednesday it has raised a $20 million Series B funding round.
Matt Hollingsworth, Carta’s founder and CEO, said the funds will enable Carta to scale by expanding its sales and marketing team and hiring more engineers to develop new products.
“I’m excited because it’s proof that we managed to do what we set out to do, which is to have a positive impact on health care,” Hollingsworth said.
He founded Carta in 2017 to improve patient care with AI-driven technology and clinical data. Carta’s software is in 16 leading U.S. health systems, including Stanford University Medical Center, Common Spirit, UCSF and Mass General Brigham.
Hollingsworth and six of Carta’s 130 employees are based in Portland, but Carta has multiple outposts, the largest of which is San Francisco.
Carta has raised $37.2 million since its founding. While the company is not yet profitable, Hollingsworth said it could be before the end of next year.
“Another thing this round will get us is profitability,” he said.
Investors in the Round B include Paramark Ventures, Frist Cressey Ventures, American College of Cardiology, Asset Management Ventures, CU Healthcare Innovation Fund, Mass General Brigham, Maverick Ventures Investment Fund and Storm Ventures.
Among other things, the Carta platform can predict how many and what kinds of supplies will be needed for a particular surgery and analyze data to reduce readmissions, all from mining the hospital’s own records.
Carta’s Atlas platform uses AI to free hospital staff from manually extracting data from medical records. Carta’s Navigator platform uses data the company curates to help figure out staffing needs.
