Investing in Carenostics: Empowering Clinicians with AI

M13 leads the $5M seed round for Carenostics, a platform deploying life-saving AI to support the treatment of chronic diseases.

Nearly 3 in 5 American adults suffer from a chronic condition such as asthma, kidney disease, diabetes, or cancer, and as the leading cause of death and disability in the US, chronic disease drains a staggering 90% of the roughly $4.1 trillion in annual healthcare spend. Despite this, chronic disease is massively underdiagnosed and undertreated, driving huge healthcare costs and unnecessary complications.

This gap in the healthcare system became deeply personal for Kanishka Rao when his grandfather succumbed to previously undiagnosed chronic kidney disease. In response to this tragedy, he and his father Dr. Bharat Rao co-founded Carenostics, a revolutionary AI platform for identifying chronic disease patients and prompting treatment.

Partnering with health systems, Carenostics’ AI-powered platform automatically ingests provider EHR data to identify and prioritize opportunities for earlier interventions around chronic diseases, activating clinicians to intervene with guideline-directed medical therapy (GDMT). The company is setting the stage for a data-driven healthcare revolution, envisioning a future where every diagnostic and treatment decision is personalized using patient data and AI.

In healthcare, you are constantly looking for an alignment of incentives. Carenostics offers an elegant solution where everyone wins: Health systems improve quality of care and reduce physician burden, payors avoid costly complications, pharma companies get life-saving therapeutics to more patients, and most importantly, patients live healthier and longer lives.

Source: Carenostics

Diagnostic applications of AI have historically fumbled for several reasons, including models that rely on overly narrow datasets that limit the number of patients identified, or alerts built on overly general rules that cause systems to flag too many patients. Carenostics is tackling these challenges by leveraging the entire patient EHR (structured and unstructured) and tailoring its AI technology to each health system it serves. Using AI to risk stratify chronic disease patients, Carenostics’ platform also helps providers avoid alert fatigue for more targeted and effective patient outcomes.

The company has already seen strong traction with health systems and pharma: Carenostics has been deployed at leading health systems including Hackensack Meridian Health—the largest hospital system in the state of New Jersey, with 17 hospitals and 6 million patient records—and other partnerships include AstraZeneca, the VA, and a partnership and investment from Bayer G4A.

As investors, we are excited to support a team so uniquely suited to execute on complex AI technology and integrate with health systems. Carenostics has built a world-class team that includes more than five AI PhDs; leaders from Siemens, McKinsey, ConcertAI, Cerner, and Amazon; and AI pioneers that previously developed the world’s first AI and natural language processing (NLP) solution deployed within EHRs at 300+ health systems.

Co-founder and COO Kanishka Rao founded and led McKinsey’s US Healthcare Startups practice, and Co-founder & CEO Dr. Bharat Rao is easily one of the top five AI healthcare experts in the world. His deep experience includes leading Healthcare and Life Sciences AI & Analytics as a Partner at KPMG, a decade-long tenure as head of Healthcare AI & Precision Medicine at Siemens, over 150 published peer-reviewed papers, 67 analytics-related patents, and one book.

Left to right: Carenostics Co-founder & CEO Dr. Bharat Rao, M13 investor Morgan Blumberg, Carenostics Co-founder & COO Kanishka Rao, and M13 Partner Latif Peracha

“Most people with a chronic disease find out they have one too late,” says Kanishka. “Our goal is to stop the story of my grandfather from repeating itself, ultimately improving healthcare outcomes and reducing costs.”

The future of healthcare is proactive, not reactive, and Carenostics’ use of clinical AI holds the transformative power to overhaul our industry by tackling the costly and life-threatening delays in diagnosis and treatment.

We are proud to lead Carenostics’ seed round and invest alongside Greatpoint Ventures, Gaingels, Kurt Hilzinger, Chairman of Humana, Dr. John Glaser, former CEO of Siemens Health Services, and Professor Srini Devadas, Edwin Sibley Webster Professor of Computer Science at MIT. We look forward to seeing the enormous benefits this technology can provide to both patients and providers.