We are excited to announce our investment in Oath Surgical‘s $10M seed round. Oath is reimagining outpatient surgery through its vertically integrated, AI-powered ASCs (ambulatory surgery centers) and value based surgery network. At the heart of this model is OathOS – the only end-to-end operating system purpose-built for outpatient surgery. We’re proud to co-invest alongside Black Opal Ventures, Rogue VC, Oxford Science Enterprises and First Spark Ventures, among others.
Tau Ventures is an AI-first fund in Silicon Valley investing primarily in mature seed – typically when there is a pipeline of customers – but we occasionally take earlier or later bets when there is exceptional promise. We found Oath to be intriguing for four key reasons: (1) the team, (2) the need, (3) their product development strategy and (4) their multiple ways to win.
1) The Team
We have been consistently impressed by the caliber and experience of the Oath team. CEO Oliver Keown, MD brings a unique blend of clinical and venture expertise, having worked as a physician as well as founding Intuitive Ventures. Alan Hale, Oath’s head of surgical centers, is a seasoned ASC operator and corporate development executive with experience at AMSURG and National Surgical Care. The broader team brings deep operational, product and technology development expertise and a shared conviction around transforming surgical care from the ground up. Our investment reflects strong belief in their proven talents and ability to execute this ambitious vision.
2) The Need
ASCs – standalone facilities that perform same-day surgical procedures – have grown in importance due to the value they deliver across the healthcare ecosystem:
- Payors benefit from significantly lower costs (procedures at ASCs cost ~50% those of hospital outpatient departments)
- Patients report higher satisfaction, the result of a more streamlined experience
- Providers gain more autonomy and alignment, and with better clinical outcomes in the outpatient setting
- Hospitals can free up capacity for higher-acuity procedures
Oath’s belief is that all surgery should be outpatient until proven otherwise and their platform aims to address the key barriers to shifting complex care to the ASC setting, at scale. This includes building a network of quality-aligned and data driven Oath Surgeons, enabling connected care with a cohesive, outpatient operating system that embeds AI across the care journey from referral to recovery, and by accelerating access to advanced minimally invasive technologies in the operating room to support surgeons in delivering their very best care. Oath is addressing this opportunity at scale – unlocking the full potential of outpatient surgery for all stakeholders.
3) Product Development Strategy
What we found particularly compelling is Oath’s choice to be their own customer of OathOS by co-developing the technology stack directly with ASC partners it is operating within the Oath network. This approach de-risks initial deployments and ensures tighter AI integration into existing workflows, which is critical for adoption in clinical settings. The result is a product designed not just for ASCs, but with them.
4) Multiple Ways To Win
Oath’s strategy is not dependent on a single play. Its multifaceted model has the potential for attractive economic impact through de novo development, M&A, a scalable OathOS software stack and population-level value-based care contracting. We believe this business model diversification drives compounding value and exciting network effects, while reducing execution risk – giving the company strategic agility to adapt and grow in a dynamic market.
We’re excited to support Oath as it builds a modern, intelligent surgical platform from the ground up.
Primary author of this article is Sam Bogrov. These are purposely short articles focused on practical insights (we call it gl;dr — good length; did read). Many of my writings are at https://www.linkedin.com/in/sam-bogrov-4a523054/recent-activity/articles/ and I would be stoked if they get people interested enough in a topic to explore in further depth. If this article had useful insights for you, comment away and/or give a like on the article and on the Tau Ventures’ LinkedIn page, with due thanks for supporting our work. All opinions expressed here are my own.
