AI startup raises $7.5M to help patients predict health outcomes. Here's how.

DeLorean AI raised millions from investors to speed up the development of artificial intelligence technology it says can help millions of people improve their health.

The Miami startup secured $7.5 million in a series A funding round led by Sopris Venture Capital, with participation from Pinta Capital Partners. Founded in 2018, the company's medical AI analyzes patient health data and creates mathematical profiles to predict the onset of chronic illnesses. From there, it can recommend next best actions, such as intervention suggestions for health care providers. The goal is to stave off disease and, ultimately, extend lives.

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DeLorean AI founder and CEO Severence MacLaughlin said the investment will accelerate the adoption of the company's medical AI in the U.S., Europe, Middle East and Latin America.

"Our approach offers a clear path to ROI, shifting the paradigm from mere forecasting to proactive prediction," he added.

In 2022, the startup became the first medical AI product to be biologically validated by a third-party laboratory, MacLaughlin said. The results, verified by blood tests and hospitalization follow-ups, demonstrated there is scientific evidence to indicate DeLorean AI's technology is able to make accurate predictions.

Disease onset predictions can help physicians, health insurance companies and hospital groups determine the best course of care for patients and prioritize that care based on risk level and other factors. It can also lead to cost savings, according to DeLorean AI, which reports its technology can reduce medical costs by up to $100 a month per patient.

The company's medical AI model is already being used by more than a dozen health care companies, including at least one Fortune 500 business. The startup does not need to receive regulatory approval for the product because it does not offer clinical diagnoses.

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“DeLorean AI’s unique ability to generate hyperpersonalized real-time predictions, rather than mere forecasts, represents a new frontier in medical AI applications," said Andy Paul, founder and CEO of Sopris Venture Capital.

It's not the only AI application DeLorean is making for the health care industry. The company also holds patent-pending rights to sales, service ticket analysis, customer relations management technology for businesses in the sector.

The funding comes as investment in AI explodes across the globe, with businesses turning to the technology to increase productivity and revenue. The average budget allocation for AI spending at health care companies alone is projected to rise from 5.7% in 2022 to 10.5% in 2024, according to Morgan Stanley.

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