Healthcare AI startup OpenEvidence relocates to Miami after $200M raise

OpenEvidence, a leading healthcare AI startup that raised $210 million in Massachusetts this July, has relocated its headquarters to Miami after securing an additional $200 million in funding at a $6 billion valuation. The departure marks another high-profile tech exodus from Boston, raising concerns about the region’s ability to retain successful AI companies despite its strong healthcare and academic foundations.

The big picture: Boston continues to lose major tech companies just as they achieve significant scale, following a pattern established by Facebook’s westward migration and more recent departures like AI chipmaker Lightmatter and crypto firm Circle Internet Financial.

What you should know: OpenEvidence has developed a chatbot system designed to assist doctors with medical diagnoses, representing one of the most promising applications of AI in healthcare.

• The company was founded by Daniel Nadler, who earned a Ph.D. in political economy from Harvard and previously cofounded financial AI firm Kensho Technologies in Cambridge.
• Nadler purchased a $38 million beachside condo in Miami this summer, potentially signaling the company’s relocation plans.
• When contacted by The Boston Globe, Nadler confirmed the move but declined to comment on the reasoning behind it.

Why this matters: The departure highlights a fundamental challenge for Boston’s tech ecosystem as AI captures approximately two-thirds of all venture capital dollars nationwide this year.

• Boston lacks major companies developing foundational AI models like California-based OpenAI, Google, and Anthropic, though it does host fast-growing MIT spinout LiquidAI.
• The region was expected to leverage its healthcare, finance, and academic strengths to generate successful AI application companies, making OpenEvidence’s exit particularly concerning.

What experts think: Michael Greeley, cofounder of healthcare-focused VC firm Flare Capital Partners, believes Boston will maintain its competitive position in healthcare AI despite the loss.

• “That parity is just the reality of the health care tech market,” Greeley said, noting that great hospitals and health insurers are distributed across the country.
• Despite OpenEvidence’s departure, “I’m not concerned,” he added, predicting Boston “will continue to see real strength” in the sector.

Local AI momentum: Several Boston-area healthcare AI companies continue to attract significant investment and demonstrate growth potential.

• Cohere Health, which uses AI for insurance approvals, raised $90 million in May with backing from Flare Capital.
• AI drug developer InSilico Medicine secured $110 million in March funding.
• PathAI, developing AI diagnostic tools, raised $95 million in January according to PitchBook data.

Looking ahead: Greeley expects continued competition for healthcare AI investments, predicting “a hyper-competitive battle” as the sector continues to expand.