Intelligent Ultrasound is to raise £5.2m with a share placing.
The company supports clinicians in their use of ultrasound by harnessing the power of artificial intelligence and simulation technology.
The Cardiff-based firm, which also has a base in Oxford, will issue 49.4 million ordinary shares.
It said the funds will be used to complete initial development work on new ScanNav products for liver, prostate and COVID-19.
Chief executive Stuart Gall said: “We are an ambitious business that is creating and developing world-leading AI image analysis software to support clinicians in their use of ultrasound and I would like to thank our shareholders for enabling us to continue to build upon the success we achieved in 2019.”