Hospital IT systems are undergoing a major transformation as Munich-based Avelios Medical secures €30 million in Series A funding. The healthtech start-up aims to modernise outdated hospital information systems (HIS), which have been linked to inefficiencies and medical errors in patient care.
The funding round was led by Sequoia Capital, a well-known investor in global tech giants such as Apple, Nvidia, and Google. Existing backers Revent and HTGF also participated, reinforcing confidence in Avelios’ mission to overhaul healthcare IT infrastructure.
The Urgent Need for Modern Hospital IT Systems
Avelios was founded in 2020 by Christian Albrecht, Nicolas Jakob, and Dr Sebastian Krammer, who recognised the limitations of existing hospital IT during the Covid-19 pandemic. According to the company, preventable medication errors contribute to 65,000 deaths annually in Germany, partly due to outdated systems that fail to provide critical data when needed.
To address these issues, Avelios developed a comprehensive HIS from scratch, designed to integrate treatment documentation, administrative workflows, billing, and patient portals. The system is also built to support continuous innovation, incorporating artificial intelligence (AI) to improve efficiency and patient outcomes.
A Unique Opportunity as SAP Exits Healthcare IT
The healthcare IT market is set for a shake-up with SAP, a global leader in enterprise software, announcing that it will exit the hospital IT sector by 2030. With 30,000 partner hospitals worldwide, SAP’s withdrawal leaves a significant gap, which Avelios sees as a once-in-a-generation opportunity to lead the transformation of digital healthcare systems.
Anas Biad, partner at Sequoia Capital, expressed strong support for Avelios, highlighting its impact on public and private hospitals.
“We were astounded by the depth and breadth of Avelios’ product and the exceptional feedback from hospitals. This is the modern operating system our healthcare sector needs.”
Long-Term Vision for Digital Healthcare
Avelios’ approach aligns with Sequoia Capital’s long-term investment strategy. Christian Albrecht, co-founder of Avelios, emphasised that the digital transformation of patient care requires sustained innovation, rather than short-term fixes.
“With Sequoia’s backing, we can build a hospital IT system that stands the test of time,” Albrecht stated.
Avelios’ Growth and Recognition
In 2024, Avelios received €2.5 million in funding from the European Innovation Council Accelerator, further validating its role as a key innovator in healthcare IT. The start-up was also recognised as one of Munich’s top 10 start-ups by LinkedIn, solidifying its reputation as a rising leader in healthtech.
With AI-driven hospital IT systems, Avelios is positioning itself as the go-to solution for hospitals looking to modernise their digital infrastructure. As the healthcare sector embraces digital transformation, Avelios is poised to redefine the future of hospital information systems across Europe.
