Houston heart health startup raises $43M in Series B to develop AI-powered platform

A Houston-based technology company that offers a range of software solutions for heart health has raised funding.

Octagos Health, the parent company of Atlas AI — a software platform for cardiac devices such as pacemakers, defibrillators, ambulatory monitors and consumer wearables — has announced a $43 million Series B funding round that will bring its technology to many more hearts.

Morgan Stanley Investment Capital led the investment, which also included funds from Mucker Capital and other strategic investors. The goal of the round is to provide funding to accelerate Atlas AI’s growth in the U.S. and expand into other areas of care, including ambulatory monitors, consumer wearables and sleep.

“This investment will allow us to accelerate our platform enhancements, in addition to scaling our sales team and operations. We are currently the only company that helps cardiology practices migrate their historical data from existing software vendors and fully integrates with any EHR (exercise heart rate) system. We do this while enabling customized reporting backed by decision-support analytics for patients and practices,” said Eric Olsen, COO of Octagos Health, in a press release.

Octagos Health was founded by a team of healthcare professionals, including Shanti Bansal, CEO, cardiologist and founder of Houston Heart Rhythm, an atrial fibrillation center. The goal was to find a new way to manage the massive amount of data clinicians face every day, in a way that combines software and physician work.

According to the Octagos Health website, “Our solution allows clinicians to focus on other ways to deliver meaningful healthcare and more effectively manage their remotely monitored patients.”

It works through customizable reporting features that allow patients’ care teams to get help while monitoring them, but to do so exactly as they would if they were crunching the numbers themselves.

“We are excited to partner with Octagos Health and support their vision to transform cardiac care,” said Melissa Daniels, Managing Director at Morgan Stanley Expansion Capital. “Octagos Health has demonstrated exceptional growth and innovation in a critical area of ​​healthcare. We believe their platform and vertically integrated software and services significantly improve patient care and streamline cardiac monitoring processes for healthcare providers.”

Will Hsu, co-founder and partner at Mucker Capital, agrees. “Octagos Health is poised for scale: industry-leading gross margins, a highly attractive product that physicians and healthcare providers love, and a market ripe for disruption by artificial intelligence. This is the next wave of diagnostic care,” he says. And with that scale, the product will be accessible to even more clinicians and patients across the country.