For Erez Druk, who spent almost four years working at Facebook, building health-care startup Freed has been a labor of love, quite literally.
Druk’s wife, Dr. Gabi Meckler, works at a community clinic in northern California, where she cares for children and adults, and delivers babies at a local hospital. When not with patients, Meckler is inundated with paperwork, constantly updating medical records and related documents.
“I got sucked into the world of clinicians,” Druk said in an interview. “One day, it was like, ‘Hey Gabi, what should we just build for you?’ And she said, ‘Do my notes for me.'”
Druk worked as a software engineer at Facebook from 2013 until launching his prior startup, UrbanLeap, in 2017. He shuttered UrbanLeap, which focused on software for public procurement, in 2022, and started Freed the following year, along with Andrey Bannikov, who had spent the prior decade at Facebook.
Freed offers an AI scribe that automates the clinical notetaking process in real time as doctors consensually record their visits with patients. The company sells the technology directly to individual clinicians, oftentimes at small or independent practices, for $99 a month, and is beginning to partner with entire practices, Druk said.
On Wednesday, Freed announced a $30 million funding round led by Sequoia Capital, a hefty haul for a company raising its first institutional capital. The company also announced new features like custom note formatting, pre-charting, and specialty specific templates. Freed said it plans to build additional capabilities, like automating coding and other billing cycle functions.
Clinicians spend nearly nine hours a week on documentation, according to an October study from Google Cloud. A study last year from Athenahealth concluded that administrative tasks are a significant reason for burnout, as 64% of doctors feel overwhelmed by clerical requirements.
Physicians are responsible for completing mountains of paperwork, including the tedious and time-consuming process of clinical notes, which contain detailed records of patient visits.
Druk wants to automate as much of that process as possible so doctors can spend more time with patients and, perhaps, even with their family.
As of late February, 17,000 clinicians around the world are using Freed in about 2 million patient visits each month, he said.
“It just started spreading,” Druk said. “It’s really been beyond my wildest expectations.”
Crowded field
Druk isn’t the only one who sees the opportunity.
The AI scribing market has exploded in recent years as health systems have been searching for tools that can help address administrative burnout. Freed is going up against tech giants like Microsoft, as well as startups like Abridge and Suki that have developed similar tools.
Josephine Chen, a partner at Sequoia, said the crowded market reflects the seriousness of the problem. She said Freed’s scribing tool has gained traction by focusing on smaller, independent offices.
“Freed’s approach is unique because most of the companies we see are serving a different market segment,” Chen said.
Natalie Desseyn said Freed is the reason she’s still working as a nurse practitioner in psychiatry.
Desseyn sees about 250 patients through a practice called Cloud Break Therapy in Virginia. She’s been using Freed for about two years and pays for it herself. Without it, she said she wouldn’t be able to see patients on such a large scale, if at all.
“I’m not over here writing, so people feel really heard,” Desseyn said. “I can’t tell you all the ways, it’s literally changed my life.”
Desseyn has tried a few other AI scribing tools, but she said she always comes back to Freed. She said its model is better at keeping things precise, sticking to the facts and avoiding extraneous comments in the notes.
Meckler, Druk’s wife, said documentation was the thing she disliked the most while practicing medicine. She said Freed felt like “magic” the first time she used it.
Previously, Meckler said she would spend about half of her day writing notes. Individual tasks that used to take her around 15 minutes to complete now take closer to two, she said.
“I expect great things from Erez, but I was still shocked,” Meckler said.
Druk said he and his 50-person team are focused on building the business and its product portfolio this year. He said he remains committed to creating a platform that clinicians, and his wife, enjoy using.
“It’s truly the most fulfilling and the most important work I’ve ever done, and probably will ever do,” he said.
Founded in 2022, ElevenLabs is an AI voice generation startup based in London. It competes with the likes of Speechmatics and Hume AI.
Sopa Images | Lightrocket | Getty Images
LONDON — ElevenLabs, a London-based startup that specializes in generating synthetic voices through artificial intelligence, has revealed plans to be IPO-ready within five years.
The company told CNBC it is targeting major global expansion as it prepares for an initial public offering.
“We expect to build more hubs in Europe, Asia and South America, and just keep scaling,” Mati Staniszewski, ElevenLabs’ CEO and co-founder, told CNBC in an interview at the firm’s London office.
He identified Paris, Singapore, Brazil and Mexico as potential new locations. London is currently ElevenLabs’ biggest office, followed by New York, Warsaw, San Francisco, Japan, India and Bangalore.
Staniszewski said the eventual aim is to get the company ready for an IPO in the next five years.
“From a commercial standpoint, we would like to be ready for an IPO in that time,” he said. “If the market is right, we would like to create a public company … that’s going to be here for the next generation.”
Undecided on location
Founded in 2022 by Staniszewski and Piotr Dąbkowski, ElevenLabs is an AI voice generation startup that competes with the likes of Speechmatics and Hume AI.
The company divides its business into three main camps: consumer-facing voice assistants, integrations with corporates such as Cisco, and tailor-made applications for specific industries like health care.
Staniszewski said the firm hasn’t yet decided where it could list, but that this decision will largely rest on where most of its users are located at the time.
“If the U.K. is able to start accelerating,” ElevenLabs will consider London as a listing destination, Staniszewski said.
The city has faced criticisms from entrepreneurs and venture capitalists that its stock market is unfavorable toward high-growth tech firms.
Meanwhile, British money transfer firm Wiselast month said it plans to move its primary listing location to the U.S.,
Fundraising plans
ElevenLabs was valued at $3.3 billion following a recent $180 million funding round. The company is backed by the likes of Andreessen Horowitz, Sequoia Capital and ICONIQ Growth, as well as corporate names like Salesforce and Deutsche Telekom.
Staniszewski said his startup was open to raising more money from VCs, but it would depend on whether it sees a valid business need, like scaling further in other markets. “The way we try to raise is very much like, if there’s a bet we want to take, to accelerate that bet [we will] take the money,” he said.
Synopsys logo is seen displayed on a smartphone with the flag of China in the background.
Sopa Images | Lightrocket | Getty Images
The U.S. government has rescinded its export restrictions on chip design software to China, U.S.-based Synopsys announced Thursday.
“Synopsys is working to restore access to the recently restricted products in China,” it said in a statement.
The U.S. had reportedly told several chip design software companies, including Synopsys, in May that they were required to obtain licenses before exporting goods, such as software and chemicals for semiconductors, to China.
The U.S. Commerce Department did not immediately respond to a request for comment from CNBC.
The news comes after China signaled last week that they are making progress on a trade truce with the U.S. and confirmed conditional agreements to resume some exchanges of rare earths and advanced technology.
The Datadog stand is being displayed on day one of the AWS Summit Seoul 2024 at the COEX Convention and Exhibition Center in Seoul, South Korea, on May 16, 2024.
Chris Jung | Nurphoto | Getty Images
Datadog shares were up 10% in extended trading on Wednesday after S&P Global said the monitoring software provider will replace Juniper Networks in the S&P 500 U.S. stock index.
S&P Global is making the change effective before the beginning of trading on July 9, according to a statement.
Computer server maker Hewlett Packard Enterprise, also a constituent of the index, said earlier on Wednesday that it had completed its acquisition of Juniper, which makes data center networking hardware. HPE disclosed in a filing that it paid $13.4 billion to Juniper shareholders.
Over the weekend, the two companies reached a settlement with the U.S. Justice Department, which had sued in opposition to the deal. As part of the settlement, HPE agreed to divest its global Instant On campus and branch business.
While tech already makes up an outsized portion of the S&P 500, the index has has been continuously lifting its exposure as the industry expands into more areas of society.
Stocks often rally when they’re added to a major index, as fund managers need to rebalance their portfolios to reflect the changes.
New York-based Datadog went public in 2019. The company generated $24.6 million in net income on $761.6 million in revenue in the first quarter of 2025, according to a statement. Competitors include Cisco, which bought Splunk last year, as well as Elastic and cloud infrastructure providers such as Amazon and Microsoft.
Datadog has underperformed the broader tech sector so far this year. The stock was down 5.5% as of Wednesday’s close, while the Nasdaq was up 5.6%. Still, with a market cap of $46.6 billion, Datadog’s valuation is significantly higher than the median for that index.