Subtle Medical has raised $33m and appointed a new CEO to advance commercialisation activities surrounding its artificial intelligence (AI)-based medical imaging software.
The California-based company’s Series C financing round was led by Morgan Stanley Expansion Capital. With additional participation from Shinhan Venture Investment and existing investors, including Fusion Fund, BRV, and Samsung Ventures, the latest proceeds bring Subtle’s total funds raised to date to $86m.
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Subtle’s lead products are SubtlePET and SubtleHD (MR). First cleared by the US Food and Drug Administration (FDA) in 2018 and 2025, respectively, the software-as-a-medical-device (SaMD) tools use AI to sharpen and enhance medical images across MR and PET workflows.
Meanwhile, following SubtleHD’s FDA clearance in February 2025, it joined Subtle-ELITE, Subtle’s broader suite of AI SaMD tools that aim to improve image quality and reduce MRI scan times. Other tools within the suite include SubtleALIGN, a software that automatically aligns brain MR scans to the ‘ideal’ anatomical position, and SubtleSYNTH for generating MR imaging contrasts from existing sequences.
With the funds in hand, Subtle intends to focus on advancing the development and market penetration of its lead products globally. To drive this aim, Subtle announced the appointment of Ohad Arazi as its new CEO in tandem with the announcement of its latest fundraising. Arazi has previously held CEO and leadership roles at companies including Change Healthcare, Zebra Medical Vision, and Clarius Mobile Health.
Reflecting on his appointment, Arazi said: “What drew me to Subtle is that this isn’t a point solution – it’s becoming the AI layer where health systems run their imaging.
“That’s a fundamentally different kind of company, and a bigger opportunity. I’ve spent my career at the intersection of imaging and enterprise software, and I haven’t seen many platforms with this combination of clinical validation and scalability. I’m here to make sure the world knows about it.”
AI is having a vast impact in the healthcare space, with a particularly broad impact in the medical imaging space. According to a report by GlobalData, the combined AI market across healthcare was valued at $11.9bn in 2024 and is expected to reach a valuation of $57.4bn in 2029.
