Empowering physicians with AI to improve patient outcomes: Our investment in Aidoc

For investors deeply passionate about healthcare, there is no dearth of excitement and inspiration in contemporary times. Specifically, we are now seeing modern technology platforms being developed on the back of transformative progress in computer vision, computational technologies and methods, and the ability for systems to interconnect, in addition to sophisticated data modeling capabilities, among others. This innovation has served as the foundation for a new generation of healthcare software companies to take on massive industry challenges, including high-impact areas such as democratizing patient access, improving the quality of care, reducing drug discovery and development timelines, enabling frictionless payment and collections, and driving efficiencies in business processes and operational workflows. Aidoc is one such healthcare technology company with a vision to be the intelligence layer for medical imaging diagnostics and care coordination.  

Aidoc was founded in 2016 by CEO Elad Walach, CTO Michael Braginsky, VP of R&D Guy Reiner and CMO Gal Yaniv who met while serving in the Israeli Defense Force’s Talpiot program, an elite technology program focused on Artificial Intelligence (AI) and Machine Learning (ML) research. The company’s platform consists of 20 medical applications, including 15 FDA-cleared algorithms, designed to drive speed, efficiency, and accuracy of diagnosis in medical imaging and multidisciplinary coordination of care in the context of more complex episodes – stroke and pulmonary emboli, specifically. 

Medical imaging represents a massive component of overall healthcare spend – the U.S. spends approximately $118 billion on imaging services annually, and expenditures are projected to grow approximately 7% per year for the foreseeable future. For complex patient cases, clinical personnel across multiple medical specialties must be engaged in order to determine the appropriate treatment. Historically, this coordination of care across stakeholders has proven challenging, lacked systemization, and been performed largely via offline methods. As healthcare providers have introduced more multidisciplinary programs and increasingly look to standardize the provision of care across them, technologies that enable care coordination and provider collaboration across specialties have become increasingly important.

Aidoc’s mission is to leverage AI and workflow software to drive multidisciplinary care coordination and deliver the right diagnosis, at the right time, to the right physician. To that end, Aidoc has developed a technology platform that applies the company’s 15 FDA-cleared algorithms – with many more on the way – to a radiologist’s queue in order to prioritize and triage patient cases. Further, the company’s growing repository of millions of annotated medical images is used to continually improve its algorithms over time. Importantly, Aidoc’s AI is “always on,” and the platform applies the company’s algorithms to every case simultaneously, allowing cases in more urgent need of intervention to be elevated for review regardless of where they fall in the queue. Following triage and diagnosis, Aidoc’s software also enables clinical personnel to coordinate the downstream provision of care by facilitating information sharing and communication across multiple stakeholders. Finally, and perhaps most impressively, the company’s platform integrates seamlessly within the existing operational workflows and clinical protocols of its customers.

Aidoc’s customers include a number of large health systems in the U.S., including HCA, Northwell Health, The Mayo Clinic, and Cedars-Sinai. The company also has a meaningful presence internationally, with customers that include Antwerp University Hospital, Netherlands Cancer Institute, Sheba Medical Center, and Alfred Health, among others. Finally, Aidoc also has partner relationships with leading radiology service providers, including Radiology Partners and Everlight Radiology.

The company’s customers derive value from Aidoc’s platform in terms of: a) increased diagnostic efficiency, b) improved prioritization and triage of the most complex or urgent cases, c) higher-quality diagnoses and reduced diagnostic error-rates, and d) more systematized, streamlined coordination of patient care. The company’s compelling value proposition, coupled with its reputation for high-velocity, relentless innovation and above-and-beyond customer delivery and support, has engendered customer delight. As evidence, Aidoc boasts an average net promoter score of between 80 and 90. 

TCV’s healthcare team has spent the last several quarters prioritizing companies that provide AI technology across various applications for the healthcare industry. Most recently, this focus led to our investments in BenchSci, a provider of AI software for driving productivity in preclinical research for the life sciences industry, and Syllable, a provider of AI technology for provider business process automation (and soon payor and other healthcare sub-sectors). 

Our Series D investment in Aidoc, completed in partnership with our friends at Alpha Intelligence Capital, General Catalyst, Square Peg Capital, and Emerge Ventures, represents another illustration of our thesis, this time for diagnostic and care coordination use cases. The Series D funding is intended to help Aidoc expand the company’s AI and ML software platform into additional applications, rapidly scale headcount, and forward invest in future growth initiatives. We are particularly excited about Elad’s vision for both the business and future of patient care, in addition to the company’s recent momentum that has established Aidoc as an emerging leader in the category. Elad has also lined-up an impressive team of advisors and experts to advise the company, including TCV Venture Partner Anita Pramoda.

“Of the various AI and ML use cases in healthcare, Aidoc’s is the one that I’m particularly excited about – their technology immediately improves patient outcomes and drives efficiencies for clinical personnel,” says Anita Pramoda, TCV Venture Partner. “Exponential patient and provider value will continue to be realized as Elad and the team roll out new algorithms, software applications, and integrations. In the future, instant diagnosis of conditions will transform patient care as we know it, and most importantly, save lives.”

Value proposition and momentum notwithstanding, what also impressed us is the humble, high-learning, and customer-centric culture Elad and his team have developed that permeates throughout the organization. Starting with Elad, it was clear during our diligence that the Aidoc team is mission-driven and firmly committed to using their team members’ talents to develop technology that improves patient outcomes through AI-driven care coordination. The results speak for themselves – Aidoc is a top-ranked employer on Glassdoor.

“With healthcare institutions facing labor shortages and navigating difficult economic situations, the future is predicated on value-based care that is enabled by automation technologies like AI and ML,” says Aidoc CEO Elad Walach. “But AI and ML are not enough in singular use cases – they must be applied across the entirety of a healthcare enterprise in order to deliver value-based care to the extent that would make a deep impact – an intelligence layer covering the entire patient lifecycle. That’s where we believe our AI Care Platform will transform healthcare. Partnering with TCV – a team that truly understands the importance of value-based care – gives us the support we need to manifest our vision.”

We are off to the races in our partnership with Elad and the Aidoc team, and are incredibly excited to help build a category-defining, generational software company that helps improve patient outcomes through AI-driven care coordination.

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The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/


TCV invests in Evisort to deliver scalable, AI-powered contract management

Contracts are at the heart of business, enshrining a company’s rights and obligations across areas ranging from sales transactions and supplier relationships to employment agreements and beyond. Resulting from this centrality, rising contract volumes and legal complexity have made contract management unmanageable without leveraging technology.

Evisort delivers end-to-end contract intelligence software that turns contracts into data. Customers use a simple, intuitive interface to extract critical context from contracts, integrate that data into other enterprise systems, and automate a wide range of legal and operational workflows – themselves codified in contract data. Evisort’s platform is powered by award-winning AI that is purpose-built for contracts and trained on over 10 million documents, thereby driving a differentiated customer experience and rapid, tangible ROI.

We are thrilled to announce TCV’s Series C investment in Evisort. We believe that contracts have been both an under-managed source of risk and under-explored source of value for companies, and that Evisort’s AI-powered Contract Intelligence Platform solves increasingly important pain points for businesses of all sizes, ranging from the Fortune 500 to mid-sized companies alike.

Evisort was founded in 2016 by lawyers and technologists who saw the need for automation in contract management.  The platform started as an intelligent analytics engine that extracts clauses and metadata to index contracts and their contents, making them easily searchable and manageable without manual data entry. Evisort’s AI further contextualizes the contract, indicating what type of contract it is, identifying counter-parties, flagging auto-renewal dates, and more.

More recently, Evisort has been adding workflow capabilities – relevant for coordinating contracting processes and operational workflows across the business. Evisort’s end-to-end approach ensures that all contract data is located in one repository, minimizing security risks, reducing the number of required integrations, and allowing the system to apply learnings from previous contracts to new ones.

More than any other contract management software business we’ve evaluated, Evisort’s AI platform supports a wider range of teams, industries, and use cases. Sales teams use Evisort to drive sales and renewals by reducing contracting friction and speeding time to agreement and revenue recognition. Legal departments use Evisort to drive compliance, quickly find and report on critical information, and act as a single source of truth. Procurement and sourcing organizations rely on Evisort to accelerate purchases, negotiate stronger agreements, and manage supplier risks more effectively. In all cases, Evisort drives efficiency by reducing reliance on manual legal review – a major bottleneck in many contracting processes.

Transforming the future of contract management

Evisort’s Contract Intelligence Platform has three main capabilities:

AI-Powered Contract Analytics and Insights: Evisort extracts data from contracts, produces critical insights, and reports on those insights in an easy-to-use dashboard, so that users can focus on higher value tasks. This contract intelligence is then used to generate workflows across the organization. Evisort is focused on delivering the intelligence layer between core operating systems such as customer relationship management and enterprise resource planning platforms.

Intelligent Contract Lifecycle Management: Evisort provides contract request intake, contract drafting, approvals, version control, and repository (storage, search, reporting) features. Evisort’s platform creates a source of truth so teams can centralize knowledge, collaborate easily, and simplify contract administration.

Central Contract Repository and Integrations: Evisort’s no-code platform lets legal, sales, and procurement teams self-serve, taking the burden off of IT teams and providing immediate configurability. Evisort easily integrates into existing systems to minimize the need for data migration and accelerates deployment because employees can work from the systems they already use.

Why now: A big market waiting for the right end-to-end product

At TCV, we have invested extensively behind the digitization of the legal industry – having backed innovative legal technology industry leaders such as Clio, LegalZoom, and Avvo. As part of our work in this space, we have been closely following the evolution of the CLM market for nearly a decade. In that time, customers consistently indicated a desire to manage both new and existing contracts in the same place – in other words, a true end-to-end platform. Over the last several years, our conversations in the space increasingly indicated that Evisort’s founders Jerry, Jake, and Amine had built exactly that and Evisort’s platform was seeing accelerating adoption in a largely greenfield market.

Evisort customers – which include our portfolio companies such as Netflix – typically start with analytics use cases to understand existing contracts, and then add pre-signature workflow to more efficiently generate new contracts. From there, thanks in part to Evisort’s ease of use, usage often quickly expands to additional teams and stakeholders within their organization. For customers, the results are industry-leading time-to-value, implementation speeds, self-service analytics, and flexibility to apply contract-based insights to a wide range of business functions. For Evisort, a cohesive and forward-thinking strategy appears to have translated into an innovative and fast growing company in an exciting market.

Looking Forward

As we look to the future, we are incredibly excited about the tailwinds strengthening Evisort’s value proposition for its customers. Businesses of all sizes have more contracts and a greater need to manage them than ever before. The compliance and regulatory environment also continues to evolve, requiring businesses to maintain constant visibility into their contract corpus. And companies are increasingly leveraging the data embedded in contracts to drive business processes across sales, procurement, operations, and finance.

Given that robust backdrop, we are incredibly excited to work with Jerry, Jake, Amine and the rest of the Evisort team to maximize the opportunity for AI applications in contract management.

 


Understanding the Future of High Tech

If the best way to create the future is to build it, then the best way to understand a possible future is to listen to those who invest in it. Gartner interviewed several leaders at TCV to better understand their views on the future of high technology and high-tech providers. The views expressed below represent TCV’s view on its operations and the future. These opinions are TCV’s own and independent of Gartner positions. Throughout the interviews, the following themes emerged regarding the forces and factors driving technology investments and future success:

  • Top-line revenue growth has replaced cost efficiency as the primary job for technology — it is now Job. 1.
  • Insight is the source of effective strategies for achieving growth through differentiation and specialization.
  • The pace of change is accelerating across the frontiers of technology, including how rapidly companies and consumers adopt it — and few competitive advantages are as decisive as speed.
  • Technology architectures are in the midst of a generational change that is driven by more than the cloud or Hyperscalers.

TCV has invested in these insights, focusing on companies with the technological potential to support rapid, substantial growth in large, untapped markets. Figure 1 shows the ideas and connections TCV leaders described as the future of high tech.

Figure 1. TCV’s Perspective on Technology-Accelerated Growth

Growth Is Job 1 for Technology

“When you cut through all of the jargon and acronyms, the biggest difference for software and tech over the past five years has been in supporting growth,” says McAdam, who contrasts the growth imperative with technology’s prior jobs of taking costs out or getting cheaper computing power. 

“Technology has created operating leverage via business process automation. Now technology’s value rests in driving top-line growth.” This changes the nature of technology, how it is valued, and what it does, according to McAdam.

“Growth is the uber premise when we think about disruptive technology solutions and the digitization of everything that drives our investment themes,” McAdam explains. “Consider CFOs. It used to be that an old-school CFO would be cost-oriented and say yes if the solution saved money and drove EPS. CFOs of today still care about this, but not as much as they care about taking market share from the competition. The clearest way a tech company can get a multibillion-dollar market cap — one that is 10, 20, 30 times revenue, is to provide a product that allows customers to transform their businesses and grow faster than the competition.”

Building for Scale and Speed

Applying technology in support of revenue growth requires TCV to work with companies on their go-to-market (GTM) strategy. TCV uses the ratio of revenue growth to sales and marketing expense (see Figure 2a) to identify points of friction and efficiency.

Figure 2. TCV’s Sales and Marketing Ratio

The calculation indicates how much new growth the company is achieving for every dollar spent on sales and marketing. If the ratio is 50 cents every $1 spent on sales and marketing generates 50 cents in new growth. The lower the ratio, the more opportunity there is to increase efficiency or effectiveness.

Figure 3 illustrates how the sales and marketing ratio can visually depict the performance of a company’s sales and marketing efforts. (Note these ranges are for illustration only; typical ratios vary by industry.)

Figure 3. Illustrations of Sales to Marketing Ratio

Source: TCV

TCV is using technology in a number of ways to move the needle:

  • Implementing analytics and diagnostics to identify growth obstacles, and documented strategies to better orchestrate key GTM practices across sales and marketing.
  • Facilitating forums and collaboration where leaders share ideas and best practices and road-test ideas with other executives.
  • Leveraging GTM practices that are based on best practices within the portfolio and providing other TCV companies with ready-to-programs to speed time to value.

TCV’s head of Marketing, Katja Gagen, added: “We see companies using technology to optimize their go-to-market capabilities. This can range from publishing thought leadership on growing sales pipeline or refining their messaging. The difference with technology is that companies can actively benchmark themselves against industry best practices.”

Blending Human Insight with Analytics to Identify Growth Potential

“We track nearly 10 million companies in our database,” notes Tim McAdam, a general partner at TCV. “We then do a deeper analysis of 2,000 to 3,000 candidates per year in order to select 12 to 15 companies in which to invest.” This puts our information on prospective companies into an analytic engine running proprietary algorithms created from the firm’s domain knowledge, sector expertise and 26 years of investment insights.

The result for each candidate is much like a credit score — a snapshot of investment worthiness that guides subsequent analysis and decision making. As McAdam explains, “Any given result is statistically valid because of the high number of other companies we have ranked against the same set of metrics. It’s an empirically driven assessment of the company’s areas of strength and needs for improvement.”

TCV uses this information to differentiate each of its portfolio company’s situation and connect it with experienced people and resources in support of the company’s success. McAdam compares TCV’s role to that of a coach, “we recognize that the founders of our portfolio companies are deeply invested in their firms. We seek to provide advice for them with humility, intellectual honesty and insight, with an eye toward finding solutions that move them forward.”

Growth requires a different Technology Architecture and Infrastructure

Matt Robinson, a TCV principal, explains that “high-tech architectures shift about every decade. Today, the increasing importance of speed, extensible solutions and consumption-based business models is the driver of evolution in architectures and infrastructure. If my technology is designed to drive your top-line growth, then your growth becomes my growth,” Robinson explains. “Our architectures and infrastructures need to be seamlessly integrated together.” Thus, the business case for architecture evolution is at least as important as the technical innovation from cloud and Hyperscalers.

The Future of High Tech — High Growth Potential

TCV does not see the future as one of consolidation around a few large well-capitalized companies — either Hyperscalers or so-called digital giants. “It is an old argument to think that everything will consolidate,” McAdam notes. “That view makes sense only if companies stop finding new ways to grow.” While he believes that Hyperscalers are important, he sees their role as “more of a channel to a stream of future technology-intensive growth and innovation rather than a competitor in the application/solution space.”

Gartner subscribers can see the full published case study at: Case Study: The Future of High Tech and Generative Providers (TCV).