XCures closes $46M Series B round at $127M post-money valuation

XCures, an AI startup that structures and cleans unstructured medical records, has closed a $46 million Series B round led by Innovius Capital with participation from iGrow, Spring Mountain Capital, and existing investors. The funding brings the company's total capital to over $76 million since its 2018 founding and values it at $127 million post-money—more than double its Series A valuation of $64 million in December 2023. The company processes 300+ million medical records from 550,000+ healthcare locations nationwide, supporting clinical decisions for millions of patients.

XCures was founded as a Cancer Commons spinout focused on decision-support for advanced-cancer patients but pivoted to solving a deeper bottleneck: patients' medical data was arriving in FedEx boxes and faxes, making it impossible to automate clinical guidance. The company built integrations into national healthcare interoperability networks and developed what it calls a "clinical clarity engine"—combining proprietary ML with commercial frontier models from vendor LLMs, governed through a custom framework to turn 'dirty data' into actionable clinical intelligence. XCures hit $10 million in annualized recurring revenue in 2025 (up from ~$3M) and is on track to exceed $20 million in 2026.

For healthcare infrastructure builders, this validates the massive TAM in medical-data normalization and compliance automation. XCures' enterprise customers—Exact Sciences, Caris Life Sciences, Novocure, large hospital networks, telehealth, and Medicare Advantage plans—are using the platform for preop comorbidity screening, prior-auth automation, and risk stratification. As healthcare systems race to extract value from AI, the unit economics of 'data cleaning as a service' and the willingness of payers and providers to fund it offer a template for B2B healthcare-AI businesses.