Untapped Ventures Portfolio company, ScienceIO, acquired by Veradigm

Revolutionizing Healthcare Data with AI: ScienceIO's Groundbreaking Exit and Vision for the Future

We are thrilled to announce Untapped Ventures' first successful exit of ScienceIO, which was acquired by Veradigm, a leading healthcare technology company. The $140 million acquisition, the largest of M&A deal of Q1 within the entire AI venture ecosystem, has captivated the attention of authorities across the industry from leaders at Forbes and beyond.

As an early-stage venture capital firm with a mission to back companies redefining the ways we use AI to uplift humanity, we took notice of ScienceIO's massive potential and backed them early on in their journey

We at Untapped Ventures believe that the future of generative AI investment will be in vertical-specific applications. As the market matures, attention is shifting from general-purpose language models to more tailored AI solutions for specialized industries like healthcare. As the competition from tech giants intensifies at the foundational AI model layer, it is becoming increasingly difficult and resource-intensive for most companies and investors to build large language models or generalized AI products, making vertical AI applications a more viable and attractive investment opportunity. Vertical AI companies can leverage unique datasets and deep domain expertise to deliver more accurate and cost-effective solutions, compared to horizontal AI platforms. At Untapped Ventures, we are excited to back visionary founders building transformative vertical AI tools.

Veradigm also took notice and are bringing ScienceIO into their suite of healthcare technology products that combine data-driven clinical insights with actionable tools for payers, providers, and life science companies. Veradigm will leverage ScienceIO's AI platform to create proprietary large language models and build new features using Veradigm's extensive dataset spanning over 400,000 providers and 200 million patients, while ensuring data integrity and patient privacy. The company plans to tap into ScienceIO's capabilities to position them as a growth engine for their future, all while delivering greater value to customers and better outcomes for patients throughout the healthcare ecosystem.

ScienceIO addresses current data extraction barriers faced by clinicians and patient privacy issues with their natural language processing tool. By extracting crucial insights from previously unstructured and intricate medical records, ScienceIO ensures that key patient information becomes easily accessible and actionable for providers. Also known as the Stripe of Medical Data, their powerful machine learning product quickly scans and identifies patient health variables, ensuring that key information is easily accessible and actionable for providers, all while protecting confidential patient data. ScienceIO's platform enables other major technology companies to build their own healthcare products at scale.

Making sense of clinical data with current methods is cumbersome and inefficient. Pharmaceutical companies and research hospitals often painstakingly comb patient records manually to identify the right population that matches narrow clinical trial inclusion criteria. Not to mention, a single patient can have hundreds of medical records that make manual review impractical. For example, there is no explicit diagnostic or procedure code unique to patients with triple-negative breast cancer. A search for breast cancer codes in an electronic health record may yield thousands of results that require manual review to determine the specific cancer subtype. The necessary information is encoded in unstandardized records, such as a clinical diagnosis written in plain text or supporter biomarker reports in a PDF attachment.

For those who choose to leverage existing AI solutions, a major concern for medical institutions is what happens to patient data when AI models have access to confidential records. McKinsey reports that one of the main factors pharmaceutical companies and medical products organizations must consider when integrating generative AI into operations is privacy considerations. In Deloitte’s State of AI report, one of the top concerns echoed by 28% of respondents within the healthcare industry was managing AI-related risks and ensuring patient privacy. The use of clinical data and images by AI applications could increase the risk that information might leak, potentially violating regulations that require the protection of confidential patient data. 

ScienceIO’s platform will help enable Veradigm more seamlessly achieve breakthroughs in healthcare by structuring all the healthcare data in the world, while safeguarding patient privacy. Their natural language processing tool combines machine learning to find variables that impact patient health, allowing clinicians to build a fuller picture of patients based on their complex backgrounds. 

Recently, the company partnered with the Mayo Clinic Platform to identify patients with confirm triple-negative breast cancer diagnoses. Doing so manually would have taken 100+ work years. Instead, ScienceIO’s powerful platform was able scan 132,000+ clinical notes in a day and identify 55 confirmed cases. With ScienceIO, clinical trials overseen by some of the most trusted medical institutions can more accurately and efficiently target the most precise patient populations, potentially enabling access to critical care for the most underserved through research applications. 

We're absolutely thrilled for our portfolio company's major exit, congrats to Thiel Fellow, Will Manidis, and Gaurav Kaushik (Harvard, UC San Diego, and Columbia alum) on this major milestone.