Heidi: Health AI Startup Raises $340 Million at a $900 Million Valuation

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Australian health AI startup Heidi has closed a Series C round of $100 million. The round is led by Australian investor Blackbird, with participation from existing backers Phoenix Court (the investment firm behind LocalGlobe, Latitude and Solar Funds), Point72 Private Investments and Headline. It values the company at $900 million.

In parallel, Heidi is receiving $240 million in growth financing from General Catalyst’s Customer Value Fund (CVF). That instrument works as revenue-based growth capital: it covers sales and customer acquisition costs and is repaid out of the revenue those costs generate, leaving existing investors’ stakes undiluted. Together, the two deals give the company $340 million in fresh capital. Heidi says it has raised $436.6 million to date.

The valuation has roughly doubled within a year. At its $65 million Series B last year, the company was worth about $465 million.

What Heidi Does

Founded in Melbourne, Heidi started out as an AI scribe: software that listens in on consultations, transcribes them and automatically produces the clinical documentation that follows, including notes, referrals and letters. The use case is easy to explain and commercially significant, because clinicians spend a large share of the working day on paperwork that lends itself to automation.

The company now positions itself more broadly, as an “AI care partner” that accompanies the entire clinical day. The portfolio includes Evidence, which surfaces contextual medical reference material at the point of care and has answered close to eight million queries since launching in the spring, a dictation feature that works across applications, and Remote, the company’s first piece of hardware. The platform is increasingly integrated with electronic health record systems.

On the technology side, Heidi invested early in purpose-built clinical models. Transcription and note generation, which account for most of its compute load, run almost entirely on the company’s own models rather than on bought-in frontier models. Clinical decisions remain with the clinician at all times.

Usage and Traction

Heidi puts current usage at roughly 2.8 million patient encounters per week across 190 countries and 110 languages. Cumulatively, the company reports more than 175 million patient encounters and over 67 million clinical working hours supported, more than three times the figure a year earlier. Annual recurring revenue has grown from $1 million to $50 million in the two years since the product went on sale, according to the company.

In public healthcare, Heidi recently landed a significant reference customer: it was selected as sole supplier for NHS England Midlands, which the company describes as the largest procurement of clinical AI documentation in NHS history. It covers 15 acute and community trusts, every integrated care board in the region and 1,239 GP practices. In Australia, the software is in use at the Royal Children’s Hospital Melbourne, Children’s Health Queensland and Metro South Health, among others, and in New Zealand it has been rolled out across every emergency department in the country.

German-Speaking Europe as a Growth Market

For the DACH region, Heidi reports a 205 percent increase in monthly active users since entering the market around the time of its Series B, with more than 600,000 patient interactions over that period. As a reference client it names Swiss Medical Network, one of Switzerland’s larger private hospital groups.

With the new capital, Heidi plans to double its DACH headcount and build a local leadership team in Germany. It also intends to tailor its products more closely to the requirements of the German, Austrian and Swiss health systems.

Regulation as a Cost Driver

Part of the Series C will fund regulatory work for advanced clinical features in Europe and the UK. That is the real bottleneck in this segment: once software goes beyond documentation and starts producing clinical recommendations, EU medical device rules apply, on top of GDPR requirements and the standards set by national health systems. Heidi points to certifications including ISO 27001, ISO 42001, SOC 2 Type II and Cyber Essentials Plus, as well as an in-house clinical research team responsible for testing, validation and published research.

“From the day I founded Heidi, my vision always went far beyond writing doctors’ notes,” says co-founder and CEO Thomas Kelly. “I imagined an AI that accompanies clinicians through the entire working day, from documenting consultations to supporting the work that flows out of them.”

Heidi competes in a market that includes Abridge, Ambience Healthcare and Nuance with the Microsoft-owned DAX Copilot internationally, alongside adjacent players such as Nelly and Doctorly in German-speaking Europe.