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Home»Latest»Australian AI health tech startup valued at nearly $500M after funding round
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Australian AI health tech startup valued at nearly $500M after funding round

info@thewitness.com.auBy info@thewitness.com.auOctober 6, 2025No Comments3 Mins Read
Australian AI health tech startup valued at nearly 0M after funding round
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Of course, not all doctors adopt new technology lightly. “Everything in healthcare comes with a healthy dose of scepticism,” Kelly says. “Clinicians want to be absolutely sure their tools are safe, that they protect patient data, and that they don’t compromise quality of care.” To win them over, Heidi designed its onboarding so doctors can trial the system privately, feeding it tricky cases to see how it performs.

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“Usually their first reaction is: holy shit, I can’t believe how good this is,” Kelly says.

That response has fuelled explosive growth. Since launching in February 2024, Heidi has been used in more than 73 million patient consultations across 116 countries, including over 800,000 consults every week in Australia alone. Locally, it’s now embedded in Monash Health and Queensland Children’s Hospital, with international deployments from the NHS in the UK to Beth Israel Lahey in the US.

Professor Paul Middleton, senior specialist in pre-hospital and emergency medicine, says that key technologies like AI will ease the forthcoming strain.

“Patients will receive a vastly different experience [in the future] and medical teams will focus on providing high-quality healthcare,” he says. “Bedside real-time analytics, modelling and geolocation, assessing epidemiology of disease on a local basis to address prevalence, orders for tests and scans, and patient transfers will all be powered by AI.”

Heidi Health hasn’t had an entirely smooth ride. In 2023, when OpenAI released GPT-4, the entire premise of building Heidi’s own medical language models was suddenly upended. “We’d spent years building our own tech, then overnight, anyone could launch a competitor,” Kelly says.

Blackbird Ventures partners Phoebe Harrop, Tom Humphrey and Michael Tolo.

Blackbird Ventures partners Phoebe Harrop, Tom Humphrey and Michael Tolo.Credit: Blackbird

The company responded by tearing up its business model, laying off 60 per cent of staff, and pivoting to a free, product-led approach. Generating a single note cost between 50 cents and a dollar at the time. “It turned out what really matters isn’t the AI itself. It’s the product experience and whether doctors actually want to use it.”

With fresh funding, Heidi now plans to double its headcount, expand in the US, UK and Canada, and continue building features like automated evidence search and patient follow-up calls.

Investors are bullish. Blackbird investor Michael Tolo says Heidi has the potential to be one of Australia’s most important exports. “Heidi is showing us what it looks like when Australia builds a healthcare company with truly global scale,” he says.

“Founded in Melbourne, the product already supports millions of consults every week in over 100 countries, but this is just the beginning. The administrative burden in healthcare is a trillion-dollar problem, and Heidi has a clear line of sight to being the defining company in solving it.

“If they succeed, Heidi won’t just be one of Australia’s great technology companies – it will be one of the great healthcare companies, full stop.”

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