While artificial intelligence (AI) holds significant promise for healthcare, its impact extends far beyond the medical realm. In fact, numerous startups are leveraging machine learning-based programs to streamline adjacent functions such as appointment scheduling and confirmations.
A Brazilian startup has joined the ranks of those believing in AI’s transformative power. Start-ups are emerging from the shadows with a mission to reduce healthcare costs and improve clinical results by developing AI intermediaries that focus on tasks taking place both before and after a medical consultation – typically handled by a centralized hub.
According to CEO Thomaz Srougi, speaking with TechCrunch, “While we often assume that only the physician-patient encounter matters, after a decade in healthcare I’ve come to realize that these pre-appointment moments are just as crucial.” (CEO pictured above)
Although Srougi hails from a family of medical doctors, he has chosen not to follow their footsteps, instead drawing on his experience as chairman of a prominent personal medical services scale-up that has garnered $168 million in investment.
While still in the early stages of its fundraising journey, Carecode has already secured significant backing: A $4.3 million pre-seed round was largely funded by a16z and QED, with Endeavor Catalyst, K50 Ventures, and Latitud Ventures also participating, alongside prominent Brazilian tech figures like Nubank founder David Vélez.
Enterprise capital in Latin America remains stagnant, but pre-seed investments like the one elevating Srougi and his co-founder, Pedro Magalhães – a seasoned entrepreneur with experience as CTO at multiple startups, including BEES Bank Brasil and Zé Supply – suggest there is still funding available for entrepreneurs.
“Accordingly, Srougi emphasized the significance of traction in securing primary venture capital investments, especially during tumultuous times; he also credited a16z associate Gabriel Vasquez with refining the Carecode concept and facilitating its transition from planning to implementation.”
As a seasoned executive with extensive industry connections, Srougi leverages his professional network to identify potential partners willing to explore opportunities with Carecode. Preliminary results indicate a promising start, according to the startup, which suggests that its AI-powered brokers can assume a significant portion of tasks typically handled by a traditional healthcare provider at a fraction of the cost, and even surpass expectations by proactively filling cancelled appointment slots, allowing human professionals to focus on more complex cases.
In a significant move for Brazilian consumers, Carecode engages with clients where they are most active – WhatsApp – by responding to both text and audio messages in this familiar digital space. “That’s crucial,” said Srougi, noting that older individuals and most low-income users prefer sending WhatsApp audio messages instead of typing. Voice calls are also on the company’s radar.
These localisation tweaks enable Carecode to stand out significantly from its US counterpart. Benchmarks comparable to those developed by Google’s former Chief Product Officer, Bret Taylor, in his AI startup.
With a unique vertical focus, Carecode stands out from its competitors. According to Camila Vieira Fernandes, Head of Brazil at QED, our approach stands out by providing startups with a distinct advantage over traditional methods that often require numerous options to produce mediocre results, ultimately diminishing customer experience and forfeiting valuable opportunities.
While market dimension often constrains a niche approach, Brazil’s healthcare industry defies such limitations, presenting a vast opportunity set that far exceeds a narrow focus. According to Srougi, Brazilian healthcare companies allocate approximately half of their revenue towards maintaining contact facilities and administrative personnel costs, an annual expenditure of roughly $100 billion.
By embracing a niche-focused approach in the healthcare sector, Srougi’s team believes that Carecode can create a sustainable competitive advantage compared to more generic competitors, thereby building a protective moat. We may have the potential to transition to insurance coverage in various sectors, including life insurance and healthcare-related fields. We require access to financial resources in order to move forward. We could faucet into financing. The insights stem directly from the healthcare industry, he noted.
