US co Datavant buys medical insurtech co DigitalOwl

DigitalOwl, which has developed know-how for studying and analyzing medical info to help choices by insurance coverage firms and legal professionals in medical instances, is being acquired by US-based medical knowledge platform firm Datavant. Market estimates put the acquisition worth at no less than $200 million.

The capital that DigitalOwl has raised so far is within the tens of tens of millions of {dollars}. Among the many traders within the firm are Prof. Amnon Shashua, founding father of Mobileye and at the moment an investor and chief in a number of synthetic intelligence firms; insurance coverage firm Menora Mivtachim, which was certainly one of DigitalOwl’s first prospects; and the Ibex, Perception Companions, and Fusion VC enterprise capital companies.

DigitalOwl employs fifty individuals at its improvement middle in Israel. The middle is anticipated to stay in Israel, and will even be expanded following the acquisition.

A pc can do it

DigitalOwl was based in 2017 by brothers Yuval Man (CEO) and Amit Man (CTO). Speaking to “Globes,” Yuval Man stated, “I used to be initially a lawyer specializing in torts. In dialog with my brother, I instructed him about my work, and he stated, ‘Let’s see if a pc can do it.’ At first, I used to be insulted. In spite of everything, I studied for 5 years so as to have the ability to learn and perceive medical experiences and translate them into info that may very well be essential for lawsuits in that area. However once I went again to work on the Sunday and on the next days, and examined it by way of Amit’s eyes, I spotted – a pc might do it.”

Amit Man studied for his second diploma with Shashua, and labored at certainly one of his firms. When DigitalOwl was based, Shashua was certainly one of its first traders.

DigitalOwl was based earlier than generative AI turned publicly accessible, and the corporate developed its synthetic intelligence fashions by itself. To start with, it skilled them to summarize medical information, and, within the following yr to 2 years, to derive insights from them.

“We began with the unique thought and labored with legal professionals, however promoting to legal professionals is tough, as a result of there are numerous of them, and they’re throughout. We realized that on the opposite facet of the desk was an enormous buyer – the insurance coverage firm.”

When DigitalOwl started to market its product to the insurance coverage firms, the thought arose that it was appropriate not only for managing claims, but in addition for making underwriting choices in life insurance coverage, on the premise of the knowledge within the medical information.

One plus one are 5

The client is Datavant, which offers in making medical info accessible. For instance, Man explains, if an insurance coverage firm asks for full medical information (with the client’s consent), Datavant gives the corporate a service whereby it gathers the knowledge by technological means from all of the related medical entities, and presents it in a type through which the corporate’s techniques can learn it. “They’re leaders in info retrieval, and we’re leaders in summarizing and analyzing the knowledge,” Man says. “That is the primary time through which there can be an organization within the US that gives each companies collectively.”

Datavant was based in 2017. In 2021, it merged with medical info administration firm Croix, in a deal valued at $7 billion. Since then, the corporate has made a number of strategic acquisitions. In July 2025, Enterprise Insider rated it as one of the fascinating firms for a flotation within the coming yr.

The connection between the 2 firms was made by Datavant. “The reality is that after they approached us, I didn’t absolutely perceive the size of the occasion,” Man says. “They’re an organization that has operated comparatively quietly available in the market, behind the scenes. Once they began speaking about cooperation, it turned clear that one plus one made 5.”

Distinctive standing available in the market

At the moment, life insurance coverage firms are the principle sector with which DigitalOwl works, and a lot of the main firms in that sector are its prospects. It additionally collaborates with RGA (Reinsurance Group of America), which formulates the underwriting guidelines. The 2 firms work collectively on formulating these guidelines, which provides DigitalOwl a singular standing available in the market. RGA was additionally an investor in DigitalOwl’s final fund-raising spherical, which closed a yr in the past at $12 million.

One other sector is accident insurance coverage, for instance when an insurance coverage firm seeks to know when it could be affordable for somebody injured in an accident to return to work. A 3rd sector is regulation companies – which suggests the corporate is realizing the thought out of which it was born.

DigitalOwl operates primarily within the US. In Israel, its merchandise are distributed by Eran Mor.

DigitalOwl has developed three applied sciences. The primary is evaluation of medical paperwork in an effort to perceive what really occurred to the affected person. The second is a medical database, which assists in studying the information, containing, for instance, each attainable title for hypertension, as Man defined to us prior to now. The third know-how is generative AI, which assists in writing a abstract of the medical information.

“Among the easiest choices are made semi-automatically,” says Man, “however extra sophisticated choices require, and can most likely all the time require, a human eye. Transparency is essential if you wish to help a call legally. It’s essential that the system shouldn’t fall into biases that we don’t need as a society, reminiscent of choices on the premise of race, intercourse, the place individuals reside, and so forth.

“Our algorithm could be very clear, and, in respect of each perception, the consumer can faucet on a hyperlink and see the place precisely the related info is to be discovered within the medical information, and what the thought strategy of the machine was. In our view, that’s a big benefit over our rivals.”

Revealed by Globes, Israel enterprise information – en.globes.co.il – on September 25, 2025.