Artificial intelligence (AI)

Anterior Streamlines Insurance Approvals with $20 Million AI Boost

09 June 2024

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Zahid Mohammadi

Summary

Anterior, a healthtech company leveraging AI to expedite health insurance approvals, has secured $20 million in Series A funding. This investment round values the company at $95 million post-money, according to sources familiar with the deal.

NEA led the funding round, with participation from existing investors Sequoia Capital (who led Anterior's $3.2 million seed round last year) and Neo, the accelerator that supported Anterior's launch in 2022. Angel investors, including Mustafa Suleyman, a co-founder of DeepMind and Inflection AI (recently hired by Microsoft to lead their consumer AI division), also joined the round.

Anterior, previously known as Co:helm, was founded by Abdel Mahmoud, a physician-turned-tech entrepreneur. Frustrated by the administrative burden placed on doctors, Mahmoud pursued a computer science degree and shifted his focus to leveraging technology to improve healthcare workflows.

The company's solution centers around an LLM (Large Language Model) powered "co-pilot" system. This AI assistant helps medical professionals save time by streamlining the process of gathering and compiling medical documentation required for insurance approvals. Anterior's technology aims to reduce claim denials and accelerate patient access to necessary treatments.

While their initial focus is on prior authorization automation, Anterior plans to expand into other areas of medical administration in the future.

Mohamad Makhzoumi, co-CEO and managing general partner of NEA's healthcare team, joined Anterior's board. Makhzoumi has a history of successful healthcare investments, including Tempus, a genomic testing company planning an IPO with a potential valuation of $6.1 billion, and Xaira, a recently launched AI drug discovery startup that secured $1 billion in funding.

Anterior faces competition in the prior authorization space from Cohere Health, another AI-powered solution provider. Cohere Health secured $50 million in funding earlier this year, bringing their total funding to $106 million.