AI Hospital Startup Olive Valued at $1.5B After Latest Funding Round

Olive is a startup that develops AI tools for hospital systems. Olive’s current value is over $1.5 billion after an additional $225.5 million round of financing. The latest funding round for the Columbus, Ohio-based company was led by Tiger Global Management.

Tiger Global is an investment firm based in New York that focuses on the Internet, software, fintech, and consumer sectors. Past investments of Tiger Global have included Peloton, Yandex, Spotify, Facebook, and Flipkart. Existing investors General Catalyst, Drive Capital, and Silicon Valley Bank also participated in the round. They were joined by new investors Dragoneer Investment Group, Alphabet Inc.’s GV, Sequoia Capital Global Equities, and Transformation Capital Partners.

Olive Has Raised $448 Million for AI

Olive’s software is used by over 600 hospitals across the United States. Its AI software strives to make healthcare operations more efficient and affordable by automating administrative workflows. This frees up employees from mundane tasks to allocate their time toward higher-value tasks. Its advanced AI capabilities include rapidly-scaled robotic process automation, computer vision, deep learning, and machine learning. Olive has designed the capabilities specifically for healthcare systems. The company’s slogan is “hire your AI workforce, free your human workforce”.

Data Analysis for Hospitals

The company has drawn comparisons to payments software company Stripe in the healthcare category. Venture capital firm General Catalyst, which is also an investor in Stripe, believes that Olive could follow a similar road as Stripe. Hemant Taneja, a partner at General Catalyst, states about Olive: “It is the de facto payments company for healthcare. Healthcare is as big of a category as e-commerce.”

Will AI Result in Human Job Losses?

Many hospital systems have been suffering huge financial losses as a result of the COVID-19 pandemic. The additional pressure on revenues on hospital operators has made the long-term cost-savings of Olive’s AI automation highly appealing.

Sean Lane, CEO of Olive, remarked about the company’s impact: “For every dollar Olive makes, healthcare saves five. That amounts to pretty incredible cost savings throughout the industry, and it’s helped us become an indispensable part of hospitals’ recovery plan during the pandemic.”

AI Olive Sean Lane
AI Olive Sean Lane
Sean Lane

CEO is NSA Alum

Columbus, Ohio is home to a growing startup tech scene. Auto insurance platform Root Inc. is also based in Columbus. In its October IPO, Root raised $724 million. In CEO Sean Lane’s view, starting the company in Columbus gave them an advantage in hiring top local talent. The company has since expanded hiring beyond Ohio and now has employees dispersed throughout the United States. Top competitors include healthcare-focused AI software providers such as Notable, CloudMedx, and Alpha Health.

The company has set its sights on an IPO in the near future. For now, Olive continues to focus on cementing itself as a leading AI platform for healthcare operations. It has strong momentum going forward, and the pandemic has further highlighted the critical need for effective AI solutions for hospitals and healthcare systems.

Ryan Carpenter serves as Attorney and Managing Director of Carpenter Wellington. Ryan advises clients across a broad set of corporate and commercial matters.

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