Exclusive: Healthcare AI startup Tennr is raising fresh cash from Lightspeed Venture Partners just months after its A16z-led Series A

Tennr cofounders Diego Baugh, CPO; Tyler Johnson, CTO; and Trey Holterman, CEO.

Tennr, an A16z-backed startup using AI to replace faxes in healthcare, is raising a Series B round just seven months after its Series A.

The startup is grabbing fresh cash from Lightspeed Venture Partners, according to two people with knowledge of the efforts. Those two people said Lightspeed preempted the fundraising efforts, approaching Tennr before the startup set out to raise more money.

One of those people said Tennr is set to raise $33 million in the round.

Tennr is using AI to tackle administrative work in healthcare, a red-hot area for investors. The startup automates the processing of faxes to speed up key tasks like patient referrals.

Tennr previously raised $18 million in Series A funding in February led by Andreessen Horowitz. The round brought Tennr’s total funding at the time to $25 million.

Two people with knowledge of the raise said this latest cash infusion values Tennr at more than $200 million.

Another person familiar with the efforts said the raise will value Tennr closer to $300 million. That’s a lofty valuation multiple for the early-stage startup, which is bringing in between $3 and $5 million in annual recurring revenue, the person said.

Terms of the deal are not finalized and could be subject to change. Tennr and Lightspeed didn’t respond to requests for comment for this story.

While many startups struggle to raise more cash, Tennr is among a group of hot startups raising back-to-back funding rounds as investors clamor to get into AI deals.

AI startups like Perplexity and Groq are reportedly tacking on more funding right now after closing big deals earlier this year.

Some investors are taking the same approach with healthcare AI startups. B-17reported in August that AI-powered mental health startup Slingshot AI got fast-follow funding from Menlo Ventures after landing $30 million led by A16z.

New York-based Tennr was cofounded in 2021 and was part of YCombinator’s winter 2023 cohort. Forbes reported in March that Tennr’s revenue was “in the low millions of dollars” but that the startup expected to double its customer base by the middle of the year.

The startup told Forbes at the time that it had notched contracts to provide its tech to more than 50 healthcare organizations.