New York-based venture capital firm Nodenza has announced a $10 million investment in Faction Imaging, a developer of AI-native medical imaging technologies. The funding round, completed in December 2024, marks a major step forward for Faction as it aims to improve healthcare diagnostics through a platform designed to solve persistent inefficiencies in imaging systems. The investment highlights the growing role of artificial intelligence in addressing global healthcare challenges.
Medical imaging is central to clinical decision-making but remains under pressure due to rising global demand, ageing infrastructure, and workforce shortages. Faction Imaging is tackling these problems with a platform built from the ground up. It integrates custom AI-native hardware, advanced materials, and next-generation computational methods to improve efficiency, accuracy, and scalability. “We’re building imaging systems that reflect how medicine will actually work in the next decade,” said Matt McGrath, CEO and co-founder of Faction Imaging.
The company’s clean-slate approach aims to enable real-time diagnostics and better image quality. Nodenza sees this strategy as essential to resolving structural issues that existing technologies cannot address. “Faction is rethinking imaging from first principles, it’s the kind of leap healthcare systems urgently need. Their approach tackles deep structural problems that legacy technologies simply weren’t built to solve. We’re proud to back a team with the vision and capability to redefine this space,” said Ross Morton, managing partner at Nodenza Venture Partners. He continued, “Faction has taken a clean slate approach to address the needs of patients and providers when it comes to medical imaging. They are pushing the boundaries of what is possible to revolutionise the patient pathway.”
Faction Imaging has operated in stealth mode for several years, during which it developed a strong intellectual property portfolio and early prototype systems. The leadership team has prior experience creating and scaling a medical visualisation segment used by tens of millions of patients in thousands of health systems worldwide. This background supports Faction’s ability to deliver on its ambitious goals.
The investment comes as AI becomes increasingly central to healthcare innovation. Industry reports show that venture funding for AI-related healthcare start-ups reached $6.7 billion in 2024, up from $4.8 billion the previous year. Faction’s work reflects this trend by using AI to address bottlenecks in diagnostic workflows. “We’ve spent years in clinical environments around the world, from India to Japan to the U.S. studying workflows and bottlenecks. That insight, combined with focused technology development, puts us in a strong position to deliver meaningful change at global scale,” said McGrath.
Key features of Faction’s platform include custom hardware tailored to improve imaging precision, advanced materials that enhance system durability and performance, and next-generation algorithms that reduce patient wait times by enabling faster diagnostics.
Nodenza Venture Partners was founded by life sciences entrepreneurs and focuses on biotech and medtech companies with strong potential for patient benefit. Their experience in scaling innovative technologies positions them as a strategic partner as Faction moves toward commercialisation. The $10 million investment will help accelerate the development of Faction’s imaging platform and bring advanced diagnostics to health systems around the world.
