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Atropos Health hauls in $33M to further its stake in VBC

May 23, 2024
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Illustration: Tiffany Herring/Axios

Atropos Health, an AI clinical decision support company, raised a $33 million Series B led by Valtruis, an investment platform focused on value-based care (VBC).

Why it matters: Atropos claims its ChatRWD technology can eliminate hallucination risk, a primary concern for generative AI applications.

What they're saying: "We are in the teenage years of value-based care; all the low-hanging fruit is swallowed up," says Brigham Hyde, CEO of Atropos.

  • "You need new evidence for sub-populations and we can generate that with our partnerships," he says, noting its partnership with Arcadia.
  • With fresh funds, Atropos is doubling down on channel partnerships, as well as digging deeper into life sciences, Hyde says, noting it's working with "seven of the top 10 companies in the space."

Zoom in: Alongside Welsh, Carson, Anderson & Stowe-backed Valtruis, Breyer Capital, Emerson Collective and Presidio Ventures participated.

  • The round also included new investors Cencora Ventures, McKesson Ventures and Merck GHI Fund.

How it works: ChatRWD is in beta mode and is based on Atropos' operating system, Geneva OS, which is designed to generate observational studies quickly and at-scale.

  • Leveraging data from electronic medical records and other data sets (including Arcadia's), the company's technology runs analyses using statistical methods and formats a final result into a study report within minutes — a task that can otherwise take months, Hyde says.
  • Atropos' technology is designed to quickly answer clinical questions, such as which drug is most effective for certain cancer patients.
  • Atropos says it's a clinician-friendly interface and doctors don't need a data scientist in the loop to translate.
  • ChatRWD is an LLM-independent framework and it's built to eliminate hallucination risk, according to Hyde.

What's next: ChatRWD will officially launch sometime this summer, Hyde says.

  • "This could be the last time we fundraise," Hyde tells Axios, adding that profitability is "on the horizon in the next few years."

Between the lines: Atropos plans to publish a study next month that further outlines its approach, though Hyde declined to disclose where it will be published or whether it's peer-reviewed.

  • Within the study, 75 users asked questions and 100 of those questions were run through Atropos' system, ChatGP4, Gemini Pro and others.
  • The study records which models were able to answer, which models answered partially and which ones hallucinated.
  • "All the LLMs have one fundamental flaw and that is that not every question has a study out there," Hyde says.

Catch up quick: The company collected $14 million in a 2022 Series A and has raised $53.8 million to-date.

  • The company had a post-money valuation of $93 million as of September 2023, per PitchBook.

Editor's note: This story has been corrected to note Valtruis is a value-based care focused investment platform, not a value-based care provider.

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