AI startup Basata raises $21M to automate medical referrals

Basata, a startup located in Phoenix and co-founded by Kaled Alhanafi, a former executive at Lyft and Cruise, alongside Medtronic's Chetan Patel, has successfully secured $21 million in a Series A funding round. This round was led by Lan Xuezhao from Basis Set Ventures, with additional investments from Cowboy Ventures and Sofeon, headed by Victoria Treyger. The company focuses on improving the administrative process between primary care referrals and specialist appointments, which still often relies on fax machines. Utilizing an AI system, Basata extracts clinical data from referral documents and employs an AI voice agent for scheduling. It also allows patients to contact an AI agent for tasks like prescription renewals. Currently, Basata integrates with electronic medical records for specific specialties, beginning with cardiology and urology, and operates on a usage-based revenue model. The firm has managed referrals for approximately 500,000 patients, including 100,000 in the past month, bringing total funding to $24.5 million. The competitive landscape includes Tennr, valued at $605 million, and Assort Health, worth $750 million. The founders emphasize their unique end-to-end workflow as a key differentiator, with 70% of new business generated through referrals.