Backed by Nodenza Venture Partners, the stealth-mode innovator emerges with a bold plan to reshape healthcare diagnostics

A startup building AI-native hardware for medical imaging has raised $10 million to tackle some of healthcare’s most entrenched infrastructure problems. Faction Imaging Inc., based in New York, secured the funding in a round led by life sciences-focused VC Nodenza Venture Partners, completed in late 2024 but announced this week.

The company is developing a next-generation imaging platform that aims to relieve pressure on radiology services, reduce diagnostic delays, and enable more responsive clinical care. Rather than layering artificial intelligence onto legacy systems, Faction has taken a clean-slate approach — designing new hardware and computational architecture specifically for modern, AI-integrated healthcare.

“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 platform combines proprietary hardware, advanced materials, and edge AI processing to improve both speed and accuracy of imaging — while also tackling global workflow inefficiencies. Faction’s team has spent years observing clinical systems in regions including the US, India, and Japan to understand operational bottlenecks in real-world settings.

“Faction is rethinking imaging from first principles,” said Ross Marton, managing partner at Nodenza Venture Partners. “Their approach tackles deep structural problems that legacy technologies simply weren’t built to solve.”

The $10 million raise allows Faction to accelerate development of its prototype systems and expand its intellectual property portfolio. The leadership team has a track record of scaling imaging technologies, having previously built a medical visualization platform now used by tens of millions of patients worldwide.

“That insight, combined with focused technology development, puts us in a strong position to deliver meaningful change at global scale,” McGrath said.

The company had operated in stealth mode prior to this announcement, with early signals suggesting a strong research and engineering foundation. Nodenza’s investment highlights growing VC interest in full-stack healthcare infrastructure solutions — not just point-of-care apps or diagnostics software, but reimagined clinical tools designed to handle future demand.

Faction Imaging’s technology is still under wraps, but the company says its platform is intended to do more than improve image quality. The goal is to reshape the role of imaging in a healthcare system increasingly reliant on fast, decentralized, and AI-driven diagnostics.