Clinical AI platform Mendel nets $40M series B to power real-world data research

Artificial intelligence startup Mendel has landed $40 million in a series B funding round led by Oak HC/FT for its real-world data platform.

Using AI and natural language processing, the company parses medical data from electronic medical records as well as clinical literature to produce validated analytics-ready data for research.

The goal, according to the startup, is to do away with hit-or-miss clinical treatments by leveraging real-world data for virtual experimentation, simulating disease progression and treatment outcomes.

“We believe Mendel can become a mission-critical infrastructure platform for the healthcare industry,” said Billy Deitch, partner at Oak HC/FT, in a statement. “Mendel’s technology sets a new standard in accuracy and scalability for processing unstructured medical data and we are confident that the company will continue to lead the industry with cutting-edge solutions.”

Mendel plans to use the fresh capital to expand its AI and engineering teams, scale its commercial organization, and accelerate the launch of Resolve, its new product that leverages consolidated clinical data to create a longitudinal view of the patient journey.

The startup says its solutions can unlock 80% of the world’s medical data and abstract that data 27,000 times faster than manual methods often used in clinical settings.

“The capital we have raised is a testament to the strong market fit and demand,” said Mendel co-founder and CEO Karim Galil. “Our vision is to weave Mendel into the fabric of every healthcare data platform. It’s exciting to partner with Oak HC/FT as we enable the healthcare ecosystem to provide better care for every patient.”

DCM, who led Mendel’s series A round in June 2021, also participated in the series B round.

Founded in 2016, Mendel has raised $65 million to date, according to Crunchbase.

Real-world data is gaining traction in research as a complement to clinical trials that allows for faster data collection and analysis.

Several real-world data companies are directing their efforts at cancer research. ConcertAI, which offers software-as-a-service and data solutions for oncology research, banked $150 million in a March series C funding round that boosted its valuation to $1.9 billion.

Also in March, real-world data and analytics company COTA tapped former Johnson & Johnson and Bristol Myers Squibb leader Miruna Sasu, Ph.D., to advance use of the company’s tools for cancer research and drug development.