The Startup Making Telehealth Less of a Hassle

Ambience Healthcare lands $243M to expand Al tools, streamlining care as valuation climbs near $1.25B in one of 2025's largest Series C rounds.

5 Aug 2025

Ambience Healthcare has secured $243mn in one of the largest US health-technology fundraisings this year, positioning the start-up to expand its use of artificial intelligence in both virtual and in-person care.

The Series C round, announced on July 29, values the company at about $1bn, with some estimates placing it closer to $1.25bn.

The raise was led by Oak HC/FT and Andreessen Horowitz, with contributions from the OpenAl Startup Fund, Kleiner Perkins, Optum Ventures, Frist Cressey Ventures, Town Hall Ventures, Smash Capital, Georgian and Founders Circle Capital.

Ambience's main product is an Al "co-pilot" that records patient visits, drafts clinical documentation, suggests billing codes and captures key medical information. The company says this reduces administrative work and allows clinicians to focus more on direct patient care.

The financing comes as telehealth has become a permanent part of US healthcare delivery but faces strains from physician shortages, extended wait times and growing paperwork. Supporters argue that tools such as Ambience's platform could help ease those pressures by accelerating consultations and cutting clerical burdens.

The participation of Optum Ventures and other health-focused funds raises expectations that the software could be integrated into large provider networks, reaching millions of patients. The new funding also places Ambience in closer competition with rivals including Abridge, valued at $5.3bn, and established companies such as Nuance.

Key hurdles remain around ensuring the Al performs consistently across different health systems and complying with evolving digital health regulations. Analysts caution that widespread adoption will depend on reliability, security and integration with existing electronic medical records.

Ambience's latest round underscores investor confidence that automation will become central to the future of telehealth. If successful, the technology could make virtual consultations faster and more efficient while reducing strain on the US healthcare workforce.