Morgan Stanley Expansion Capital Leads $33 Million Growth Financing For Subtle Medical

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Investment Management announced today that funds managed by Morgan Stanley Expansion Capital have led a $33 million growth financing for Subtle Medical (the Company), a medical imaging software company using artificial intelligence to improve imaging workflow efficiency and image quality across MRI, PET and CT. The financing included participation from Shinhan Venture Investment and existing investors Fusion Fund, EnvisionX, BRV, and Samsung Ventures, bringing Subtle Medical’s total capital raised to $86 million.

Based in Menlo Park, CA, Subtle Medical develops vendor-neutral software designed to operate across existing imaging equipment, regardless of manufacturer. Its solutions are used by hospitals and imaging centers to support scan-time reduction, image enhancement, dose optimization and imaging standardization workflows without requiring immediate replacement of existing scanner infrastructure.

“Medical imaging is a critical component of healthcare delivery and is under increasing operational pressure from rising scan volumes, capacity constraints and aging infrastructure,” said Kevin Han, Executive Director at Morgan Stanley Expansion Capital. “We believe Subtle Medical’s software platform addresses a clear market need by helping providers improve utilization of existing imaging assets, support clinical quality and expand patient access.”

The financing is expected to support Subtle Medical’s continued product development and commercial expansion across the United States and international markets. Subtle Medical’s portfolio includes 11 FDA-cleared software products for MRI, PET and CT workflows, and its technology is deployed on more than 1,300 scanners globally. The Company also continues to develop its AI Imaging Hub, a vendor-neutral platform intended to help providers manage imaging performance across modalities and scanner fleets.

“This is a meaningful moment for Subtle Medical. We have clinical validation, a growing installed base, and a platform architecture that scales across modalities – and now the capital and partnership to accelerate that globally,” said newly appointed Subtle Medical CEO, Ohad Arazi. “Morgan Stanley Expansion Capital brings a long-term perspective with broad healthcare experience that will be valuable as we expand adoption across modalities and geographies.”

Subtle Medical’s approach reflects a broader shift toward software-based infrastructure in healthcare, where providers are increasingly seeking tools that can improve productivity, interoperability and access while extending the value of existing capital equipment.

About Subtle Medical
Subtle Medical is a leading provider of AI-powered imaging solutions, optimizing scanner efficiency and image quality across radiology. Recognized by TIME on its World's Top HealthTech Companies of 2025 list and multiple times by CB Insights as a GenAI 50, Digital Health 150, and Top AI 100 company, Subtle Medical is committed to transforming medical imaging through intelligent software solutions. The company's products are deployed on over 1000 scanners worldwide, helping imaging centers and hospitals deliver faster scans, improved image quality, and better patient care, without the need for new hardware. Learn more at www.subtlemedical.com.

About Shinhan Venture Investment
Shinhan Venture Investment is a Seoul-based venture capital firm and affiliate of Shinhan Financial Group (NYSE: SHG), one of Korea's leading financial institutions. Founded in 2000, Shinhan Venture Investment focuses on early-to-growth stage investments across technology, healthcare, and other high-growth sectors, leveraging the financial network and resources of Shinhan Financial Group to support a portfolio of over 160 investments in domestic and international markets.

About Morgan Stanley Expansion Capital
Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets late-stage growth equity and credit investments within healthcare, technology, consumer, and other high-growth sectors. For nearly four decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 220 companies, leveraging the global brand and network of Morgan Stanley.

Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $1.9 trillion in assets under management or supervision as of March 31, 2026. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.