AI Transforming MRI Scans: Munich Startup Secures $32M to Revolutionize Egg Scanning, Eyeing Human Applications Next

Germany, France, and Italy have recently passed legislation to prohibit the culling of male day-old chicks, which are often considered surplus since they do not produce eggs. This move stems from both the waste generated and ethical animal welfare concerns. The laws aim to prompt technology firms to develop methods for determining chick gender before hatching.

One promising technology being utilized is hyperspectral imaging, which identifies chick gender based on plumage color as early as day 13 of incubation. A leading solution in commercial hatcheries is the fully automated system called “CHEGGY.”

These systems can assess various egg attributes, such as freshness, broken yolks, and shell cracks, achieving accuracy rates of up to 97% in some cases. However, they face a significant challenge: speed.

To address this issue, Munich-based startup Orbem, founded from PhD research on MRI technology, is revolutionizing the process. By integrating an industrial MRI scanner with an AI-driven platform, Orbem allows hatcheries to determine an egg's sex in a non-invasive, contactless manner. The company claims it can scan an egg in just one second, drastically outperforming current methods.

After scanning about 20 million eggs, Orbem reports it has reached profitability. Founded in 2019, the company recently secured a €30 million ($31.8 million) Series A funding round led by 83North, with participation from new investor La Famiglia and existing supporters The Venture Collective and Possible Ventures. Previously, the startup raised €10 million, half of which came from research grants from the European Union and the German government.

The founders of Orbem met during their PhD studies at the Technical University of Munich and later spun the company out of the institution.

Dr. Pedro Gómez, co-founder and CEO of Orbem, explains that their focus on poultry producers stems from the significant challenges in the industry. "Poultry faces numerous issues; billions of eggs are wasted simply due to uncertainty about their contents, leading to the unnecessary euthanization of day-old males—a practice deemed unethical and unsustainable. With new regulations in place, addressing this has become urgent." Gómez adds, "From a technological perspective, we aim to demonstrate that our systems can be exceptionally fast, accessible, and easy to use, even in the traditional poultry sector."

Orbem's ambitions extend beyond poultry; the technology is adaptable for use in various applications. For example, by analyzing nuts, Orbem could identify parasites or assess the quality inside shells, enabling features like dynamic pricing. The product also has the capability to scan other biological samples, including plant species and even the human body. Additionally, MRI technology could be utilized to evaluate construction materials for structural integrity, especially in biodegradable options.

The fusion of MRI and AI is a trend set to gain momentum in the coming years. Over the past three years, more than 710,000 “AI for MRI” patents have been filed in the medical devices sector, according to GlobalData. Furthermore, the AI market for medical imaging is projected to reach a value of $29.8 billion globally by 2032, according to Allied Market Research. AI is increasingly enhancing MRI scans for humans, providing less invasive and more effective alternatives.

Commenting on the trend, Oliver Schoppe, Principal at UVC Partners, which closely follows Orbem, stated, “While there’s a lot of hype around AI from a venture capital perspective, I see substantial potential as well. Unlike many startups, Orbem showcases a distinctive competitive edge with its robust technical integration down to MRI hardware.”

Expect an influx of MRI+AI startups on the horizon!