H3D, a Melbourne-based startup that uses AI to automate the creation of custom-fit hearing devices, has raised $5.8 million in Series A funding to bring its technology to the much larger dental market. The round was led by Significant Ventures, with new investor Co:Act Capital and initial backer Swinburne University also participating.
The company, which spun out of Swinburne University, has already carved out a niche for itself as a key technology provider for global hearing aid brands. Its AI-powered CAD/CAM platform automates the design and production of custom-fit devices like hearing aids, noise protection, and earphones. Now, it's aiming to fix a major bottleneck in a different part of the healthcare world: your local dental lab.
Sample custom hearing protection
The Dental Bottleneck
Anyone who has waited for a custom-fit dental device, like a crown or aligner, has experienced the effects of a slow, manual process. According to H3D, dental technicians typically process one case at a time, with complex designs taking up to 30 minutes. H3D argues that this workflow is ripe for disruption, hampered by a shortage of skilled technicians and the potential for human error.
H3D claims its AI technology can tackle this head-on. Instead of a one-by-one process, its software enables labs to batch-process hundreds of cases simultaneously in just a few minutes.
The startup is targeting an acceptance rate of over 95%, aiming to bring a new level of speed and consistency to the industry.
This move represents a significant expansion for the company, applying a model it has already proven in the audiology sector. To further reduce friction in its existing market, H3D recently launched a mobile scanning solution that uses a smartphone's camera to capture an accurate 3D ear scan, removing the need for traditional physical ear impressions.
Custom dental products are a massive market here in Australia alone. In 2024, the market for dental implants and prosthetics in Australia was estimated to be valued at approximately USD $226.5 million, with projections showing it will reach around USD $352.7 million by 2032.
The key product segments driving this market include:
Crowns and Bridges: These are the most common restorative products, custom-made to fit a patient's existing teeth. They are used to restore a tooth's shape, size, and strength.
Dental Implants: This segment involves creating custom crowns and abutments to attach to surgically implanted posts, offering a permanent solution for missing teeth.
Dentures: Both full and partial dentures are custom-fabricated to fit the unique contours of a patient's mouth.
Orthodontics: The demand for custom clear aligners (like Invisalign and local competitors) has surged as a popular alternative to traditional braces.
Mouthguards and Splints: Custom-fitted mouthguards for sports and occlusal splints for conditions like bruxism (teeth grinding) are a significant part of the preventative and therapeutic market.
Dental Splint Sample
Vision for AI Manufacturing
The fresh capital will be used to accelerate the global rollout of its dental technology while reinforcing its position in the hearing industry.
“This funding marks a pivotal step in meeting the future vision of AI digital manufacturing,” said Iain Mcleod, CEO of H3D. “Combining machine learning, advanced 3D algorithms and real-time cloud processing into a seamless manufacturing solution will be hugely impactful to patients receiving dental and hearing care. We are extremely grateful to our investors and our customers for believing in H3D’s exceptional team and our mission.”
Iain Mcleod (CEO) and Dr. Philip Kinsella (CTO)
Investors see a clear opportunity for the company to replicate its success in a new vertical.
Michele Troni, Significant Ventures’ Partner and H3D’s Board Director, commented: “As an early investor, SV is pleased to have supported the company’s growth to a point where, having achieved commercial success in the hearing market, it has become ideally positioned to disrupt the larger dental industry. We are proud of the traction Iain, Phil, and the team have achieved, and we are happy to lead this expansion funding round.”
Kate Eriksson, Partner at Co:Act Capital, added: “H3D brings together vision and world-class technology to deliver real value for customers in two fast-growing global markets — hearing and dental.”