AI healthcare training startup raises $31.5Mn to combat U.S. staffing shortage
MICHIGAN, UNITED STATES — Healthcare training startup Stepful recently secured $31.5 million in a Series B funding round to expand its AI-powered training platform aimed at addressing the U.S. healthcare staffing shortage.
The round was led by Oak HC/FT, with participation from Y Combinator, Reach Capital, AlleyCorp, and others.
The company’s innovative approach focuses on training individuals for entry-level healthcare roles like medical assistants and pharmacy technicians in just four months.
Affordable, fast-track healthcare education
Founded in 2021 by Carl Madi, Tressia Hobeika, and Edoardo Serra, Stepful offers an accelerated training program that costs an average of $2,500 — significantly lower than traditional trade schools or community colleges, which can take up to two years and cost as much as $20,000.
Stepful’s program combines flexible online learning with weekly instructor-led classes and group work. Upon completing the coursework, students are matched with one of Stepful’s 8,000 partner clinics or hospitals for hands-on training.
“What they say is, ‘let’s host these students. We can train them, and then if we like them, we will hire them,’” Madi explained, emphasizing how eager employers are to onboard new healthcare workers amid the current staffing crisis.
AI-driven support boosts student success
A key differentiator for Stepful is its use of generative artificial intelligence (GenAI) to support students throughout their training journey. The platform sends personalized messages to students who fall behind in their studies, helping maintain a 75% graduation rate.
If AI interventions aren’t enough to re-engage students, human coaches step in to provide additional support. “People feel that they’re supported, nurtured, and we see them,” Madi said.
Since its launch, Stepful has seen rapid growth — from just 50 students in its first year to an expected 30,000 enrollees by 2024. The recent funding round comes less than nine months after Stepful raised $12 million in Series A financing.
Addressing America’s critical healthcare worker shortage
According to the American Hospital Association, the U.S. healthcare system is projected to face a shortage of 3.2 million workers by 2026. Asset management firm Mercer also projected that of the current 9.7 million healthcare workers in the U.S., over 6.5 million are expected to exit the workforce, leading to a shortage of 500,000 employees nationwide.
This shortage affects allied health professionals such as medical technicians and assistants, nurses, and mental health professionals.
Oak HC/FT partner Vig Chandramouli highlighted that Stepful’s model stands out because it increases the overall supply of healthcare workers rather than redistributing existing staff.
“What we liked about Stepful was that it is taking people who are hourly workers…and getting them into the healthcare field where they have steady salaries and proper benefits,” Chandramouli said.
With its AI-driven model and strong partnerships across the healthcare industry, Stepful is well-positioned to significantly impact the lives of its students and the broader healthcare system.
