Today, Mendel, the company behind the clinical AI platform that understands the unstructured, natural language content within medical documents, announced it has raised $18 million in Series A funding. The oversubscribed round was led by DCM, a global venture capital firm, with participation from OliveTree, Zola Global Investors and Millennium Technology Value Partners. Return investors include Launch Capital, SOSV, Bootstrap Labs and Chairman of UCSF Health Hub Mark Goldstein. Olive Tree Managing Partner, Nichola Eliovits, will join the board.
The capital will help the company rapidly grow its business and sales team to keep up with the explosive demand for clinical AI technologies by healthcare organizations over the last year. Mendel will make global, strategic hires across sales, business development, communications and human resources to expand headcount in its San Jose and Cairo, Egypt offices 4X by Q1 2022.
“Our mission is to build a machine that can learn from the care journey of every patient. We’ve spent the last three years building an end-to-end platform that can quickly and intelligently interpret unstructured patient data,” said Dr. Karim Galil, Mendel CEO and founder. “Since our platform became commercially available last year, our revenue has increased by 15X. It’s clear that our customers see Mendel’s value as we’ve had a 100% conversion rate from our pilot program to multi-year agreements. This funding will help us grow the team and reach the next phase of our business.”
“There is huge potential for the global healthcare industry to leverage AI,” said Mendel board member and partner at DCM, Kyle Lui. “Mendel has created a unique and seamless solution for healthcare organizations to automatically make sense of their clinical data using AI. We look forward to continuing to work with the team on this next stage of growth.”
The company also announced its partnership with eFax, an online faxing solution that is part of the Consensus Cloud Services Division of leading Internet information and services company J2 Global (Nasdaq: JCOM). This partnership provides a solution to one of the most archaic aspects of healthcare — the fax machine. With the eFax and Mendel partnership, every fax is now “analytics-ready” because Mendel’s proprietary AI tools will be integrated as part of the transaction workflow even if the sender isn’t a J2 customer.
“We are extremely excited that this partnership has allowed us to offer a valuable solution to our healthcare customers and makes it easy in workflow,” said John Mannion, vice president of Alliances & Strategic Partnerships at J2 Cloud Fax Services, soon to be Consensus Cloud Services, Inc. “Mendel is the key to unlocking and extracting digital clinical information in a meaningful way, and we look forward to leveraging their proprietary AI technologies to enhance our OCR and NLP capabilities.”
With 90% of all providers still using fax as the primary method of sharing patient data, Mendel’s eFax partnership has tremendous potential across healthcare and beyond. One of the immediate byproducts of this partnership is Mendel’s Clinical Data Marketplace, a web platform that connects pharmaceutical companies conducting Real World Data (RWD) projects directly with thousands of clinics across the world. For the first time, pharmaceutical companies have a single point of access to patient data at scale from clinics and healthcare companies. Clinics are able to find and participate in RWD studies with near-real time, analytics-ready data feeds and without EMR integration or brute forced clinical abstraction by simply clicking “send fax.” Mendel’s Clinical Data Marketplace will officially launch in Q4 2021 and is currently being used by vendors as a private beta. Mendel expects to partner with over 1000 clinics globally before the end of year.
Mendel is a machine that can read and understand medicine. Mendel Health is a for-profit corporation headquartered in San Jose, California that uses novel AI technology to absorb clinical data in medical literature as well as patient health records, to unlock a wide range of Real World Data applications. For more information about Mendel, visit Mendel.ai.
DCM is a global venture capital firm based in Silicon Valley, Beijing and Tokyo with over $4.2 billion under management and a 25-year track record of top performance. DCM has invested in more than 400 early-stage technology companies globally and provides hands-on operational guidance and a global network of business and financial resources. DCM portfolio companies have an aggregate enterprise value exceeding $250 billion including industry leading companies Bill.com (NYSE: BILL), Careem (UBER), Hims & Hers (NYSE: HIMS), Kuaishou (HK: 1024), Musically (TikTok) and SoFi (Nasdaq: SOFI). For more information, visit https://www.dcm.com.