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Are health AI businesses zooming?
In a new report, Bessemer Venture Partners unpacks early insights about the prospects for artificial intelligence software services businesses it sees as a new category in the broader health tech ecosystem. This category includes AI clinical scribes, claims auditing tools, and back-office automation technology. BVP has observed a quick trajectory to $10 million in annual, recurring revenue — a metric that investors view as a crucial predictor of a business’ health. It takes AI companies 2.5 years to get to that $10 million benchmark compared to six years for health care software as a service players and three years for tech-enabled clinical services companies. The data is based on a cohort of 20 AI companies.
BVP attributes the speedy start to fast sales cycles driven by “urgency from buyers to test and buy AI-enabled solutions.” But! It’s careful to note that early revenue is often driven by trial programs that may not continue long term. (BVP, of course, is not an independent party given it invests in many of these companies.)
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