The New York-based healthcare training company Stepful raised $31.5 million in a Series B led by Oak HC/FT, with participation from Y Combinator, Reach Capital, AlleyCorp, and others. The funding will further accelerate Stepful’s efforts to fill the desperate need for healthcare practitioners in the US with its AI-powered training platform.
Revolutionizing Healthcare Training with AI
Carl Madi, Tressia Hobeika, and Edoardo Serra founded Stepful in 2021, an online training program that teaches people to become entry-level medical assistants and pharmacy technicians. The program only lasts four months, costs an average of $2,500 and offers a low cost alternative to traditional routes that take years and upwards of $20,000.
Stepful uses generative AI to make learning the experience personal. The site blends asynchronous, mobile-first modules with weekly teacher-led lectures and group work. This hybrid model creates maximum participation and a comfortable learning environment where students work independently.
Addressing Workforce Gaps
According to the American Hospital Association, the United States healthcare system will be in need of 3.2 million workers, including allied health workers such as medical technicians and nurses. Stepful strives to eliminate this by training people from a wide range of backgrounds including hourly employees and putting them into stable, paychequer jobs.
Once the online curriculum is completed, students are assigned to one of Stepful’s 8,000 partner clinics or hospitals across the country for up to two months of hands-on training. Employers adore this model and most use it to screen and recruit individuals who are well-suited for practical healthcare roles.
AI-Driven Success Metrics
Stepful’s AI skills go beyond teaching and learning. The system uses customizable reminders to motivate and keep students focused. For those who do, human coaches come to the rescue. This double focus has led to a 75% graduation rate, far beyond standard training programs.
Investors See Transformative Potential
Vig Chandramouli of Oak HC/FT said she believes Stepful can revolutionize healthcare training. “What sets Stepful apart is that we are transforming hourly workers into doctors, providing stable wages and benefits and using generative AI to deliver efficiency,” Chandramouli said.
With the Series B funding coming nine months after Stepful raised $12 million in a Series A round, investors are demonstrating their belief in the company’s growth potential and disruptive strategy.
A Growing Impact
Stepful has grown beyond measure from 50 students in its inaugural year to 30,000 enrollees by 2024. This growth reflects the growing need for allied health practitioners and the success of Stepful’s AI-based training system.
Looking Ahead
Stepful will leverage its $31.5 million investment to scale its programs and alliances with healthcare professionals so its offerings can keep up with the growing demand for healthcare staff. By combining cutting-edge technology and hands-on training, Stepful could change the face of healthcare staffing for the better.
This is a very significant achievement, both for Stepful and for the healthcare industry as a whole. In an era of workforce shortages in the US, Stepful’s unique approach is an amorphous answer to a national challenge.