Healthcare technology startup Fabric has raised a $60 million Series A round led by General Catalyst to expand its care enablement platform aiming to ease strained capacity across medical settings.
The funding comes on the heels of Fabric's official launch after two years in stealth mode building its product suite through the acquisitions of leaders in virtual care, conversational AI, and clinical intelligence software.
"Clinical capacity is the most significant constraint in healthcare and remains our primary focus across our Engagement, In-Person Care, and Virtual Care Suites," said Fabric CEO and founder Aniq Rahman. "By addressing capacity, we are improving access, which will drive down operational and patient costs."
The crisis of care capacity and its impact can be seen across healthcare: 50 minute waits for a telemedicine visit, 4 hour ER delays, urgent care centers deferring to the next day. Behind the long waits and care deferrals is a shortage of healthcare workers projected to exceed 3.2 million by 2026 alongside a 19% rise in medical errors.
Fabric's suite of products - from patient intake and self-service scheduling to provider documentation tools - aims to maximize clinical capacity by streamlining workflows using conversational AI.
For example, an ER nurse using Fabric's mobile intake forms and automated symptom gathering tools could reduce time spent on documentation, shortening total patient length of stay. The app also reduces rates of patients leaving without being seen through real-time visit progress updates.
Across its products, Fabric claims efficiency gains for clinicians ranging from 2x to 10x depending on the setting. Its CEO and General Catalyst, Fabric's lead investor, believe this focus on alleviating care capacity issues can cascade into lowering costs and improving access.
“Fabric’s expanded suite helps us drive automation and efficiency from onset through post-visit care, removing barriers to access," said Saad Chaudhry, CIO at hospital system Luminis Health.
Fabric's journey from stealth mode to this significant Series A round included acquiring fellow digital health startups Zipnosis and GYANT over the past year to expand its care capacity platform.
Zipnosis, acquired in April 2023, brought asynchronous virtual care capabilities to Fabric's portfolio. Last month's addition of conversational AI-powered patient navigation and scheduling startup GYANT aims to further maximize provider capacity.
"Because tackling healthcare’s greatest challenges, particularly clinical capacity, requires a multifaceted approach, we rapidly expanded our capabilities beyond hospital walls,” said Rahman.
Fabric's backers now include Google Ventures, Salesforce Ventures, and Thrive Capital. The startup has reportedly grown from zero to 8 figures in annual recurring revenue since emerging from stealth mode.