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Exclusive: AvoMD raises $5M seed to combat doctor burnout

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Illustration: Eniola Odetunde/Axios

AvoMD, an AI-enabled technology company seeking to automate admin, raised $5 million in seed funding, co-founder Yair Saperstein tells Axios exclusively.

Why it matters: Physician burnout continues to loom over the health care industry, which is already rankled by a labor shortage and wage inflation.

Details: The round of funding was led by AlleyCorp.

  • Other investors in the round included Las Olas, Epsilon Health and MedMountain Ventures.
  • Additional investors include angel investor Dr. Kavita Patel, a venture partner at New Enterprise Associates, as well as Mirae, Dunamu, Columbia University, Mount Sinai Innovation Partners, StartUp Health, and 500 Global.

How it works: AvoMD digitizes clinical evidence and best practices to provide physicians with interactive clinical guidelines, medical calculators, billing support and documentation automation.

  • Avo has developed standardized integrations with the largest electronic health record systems in the US.
  • It also supports AI model integration, which enables doctors to incorporate clinical predictions based on AI at the point of care.
  • "We want to help automate tasks and humanize the patient experience," Saperstein says.

What's next: Fresh funds will be used to expand sales and marketing, build out EHR integration, R&D efforts, and upgrades to the AI platform.

  • "This funding will have us set well into next year," Saperstein says, noting AvoMD could raise capital again in late 2024.
  • AvoMD, which is "closing in on $1 million annual recurring revenue," sees a path to profitability "in the next couple years," he adds.

State of play: Investors have been shelling out cash for companies that can automate repetitive and administrative tasks — freeing front-line workers to spend more time providing care.

One (not exactly fun) thing: Two of the three cofounders — Saperstein and Joongheum Park — are also physicians in New York City and had firsthand experience with burnout.

  • "Clinicians can build the best clinical tools because we know what we need best," Saperstein says.
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