Andreessen Horowitz has led a $2.3 million pre-seed round into Dentio, a Swedish startup that uses AI to help dentists with admin work. This investment, reported by Bloomberg, marks a16z's latest move in seeking deal flow outside of the US.
Dentio is an alum of SSE Business Lab, a startup incubator that has produced several successful Swedish companies, including fintech giant Klarna and e-scooter company Voi. The company's founders, Elias Afrasiabi, Anton Li, and Lukas Sjögren, developed a recording tool that uses AI to generate clinical notes, aiming to reduce admin work for dentists.
Gabriel Vasquez, a partner at Andreessen Horowitz, has been actively tracking the Swedish startup ecosystem, having taken nine flights from NYC to Stockholm in one year. Vasquez focuses on AI application investments for a16z and believes that Sweden is a hub for innovation, with several successful companies emerging from the region.
The Funding Round
The $2.3 million pre-seed round is a relatively small investment for a16z, which recently announced new funds totaling $15 billion. However, it demonstrates the firm's commitment to seeking out promising startups outside of the US, even without local offices.
As reported by TechCrunch, a16z has eyes around the world, with venture scouts scattered across Europe, to spot companies like Dentio as early as local funds might. Vasquez has also been spending time in São Paulo, where he sees significant potential for AI startups in Brazil and Latin America.
Market Context
Dentio operates in a competitive market, with fellow Swedish startup Tandem Health having raised a $50 million Series A round last year. However, Dentio's focus on dentists and its "Made in Sweden" branding may help it stand out, particularly in a region where data protection is a key concern.
With a team of seven people, Dentio aims to build a unified way of handling administration for dentists across Europe and potentially worldwide. The company's assumption is that what works in Sweden could work elsewhere in the EU, despite the fragmentation of healthcare systems.
Company Background
Dentio's founders were students at the Stockholm School of Economics and the Royal Institute of Technology when they developed their idea. They joined SSE Business Lab and received additional backing from KTH's Innovation Launch program, before securing investment from a16z.
As a16z continues to seek out promising startups globally, its investment in Dentio demonstrates the firm's commitment to AI application investments and its willingness to look beyond the US for innovative companies.
