Alterra Labs Raises $12.5 Million to Test Medical AI in Simulated Clinics

Alterra Labs raised $12.5 million in seed funding to expand a platform that puts medical AI models through simulated clinical work before they reach real patients.

Oak HC/FT provided the lead investment. Flare Capital Partners and Company Ventures also joined the financing. Oak HC/FT invests in health care and fintech, while Flare Capital Partners focuses on health care.

Alterra creates simulated clinical settings for testing models on work involving patient care, medical imaging, electronic health records and clinical trials. Doctors and scientists help design the tasks and review the models’ decisions.

The reviews can reveal where a model fails. Alterra turns those failures into training exercises, and expert feedback can help developers improve their systems.

The company works with health systems, pharmaceutical companies, biotech firms and government entities. It plans to use the new capital to expand its evaluation and training platform.

Alterra has also joined the Responsible AI Institute and participates in its TrustX Health working group, which focuses on testing and verifying agentic AI in health settings. Agentic AI refers to systems that take actions within a workflow, rather than only answer questions.