Stepful Secures $31.5M to Combat Healthcare Staffing Crisis with AI-Powered Training Programs
Stepful, a tech-driven healthcare AI training startup, has secured $31.5 million in Series B funding to address the growing shortage of healthcare professionals in the U.S. The funding round was led by Oak HC/FT, with participation from prominent investors like Y Combinator, Reach Capital, and AlleyCorp.
This new influx of capital follows a $12 million Series A funding round less than nine months ago, highlighting the rapid growth and investor confidence as reported by TechCrunch.
Empowering Career Shifts with AI and Flexible Training
Founded in 2021 by Carl Madi, Tressia Hobeika, and ex-Apple engineer Edoardo Serra, Stepful aims to train individuals for entry-level healthcare roles like medical assistants and pharmacy technicians.
The company’s online program leverages AI to streamline the learning process, providing an affordable alternative to traditional trade schools. By offering a four-month training program at an average cost of $2,500, Stepful significantly lowers the barrier to entry compared to conventional pathways that often take years and cost tens of thousands of dollars.
Carl Madi, who previously worked in the gig economy sector, recognized the potential to transition hourly workers into healthcare careers, especially during the pandemic. “When I looked into it, I realized that most pathways are either trade schools or community colleges,” Madi shared. “They can take up to two years and cost up to $20,000.”
A Tech-Driven Solution to Address Workforce Gaps
The U.S. healthcare system faces a projected shortage of 3.2 million workers in the coming years, according to the American Hospital Association. Stepful’s model seeks to close this gap by utilizing generative AI to enhance training efficiency and improve student outcomes.
The company reports a 75% graduation rate, achieved through AI-driven interventions that send personalized messages to students falling behind. If these nudges are insufficient, human coaches step in to offer additional support, ensuring students stay on track.
“What we liked about Stepful was that it is taking people who are hourly workers, in most cases, and getting them into the healthcare field where they have steady salaries and proper benefits,” said Vig Chandramouli, a partner at Oak HC/FT. “They are also clever in how they’re leveraging generative AI.”
Hands-On Training and Job Placement
Stepful combines online learning with real-world experience by partnering with over 8,000 clinics and hospitals nationwide. After completing their online coursework, students are placed in clinics for hands-on training lasting one to two months. This approach not only provides practical experience but also serves as a hiring pipeline for healthcare employers facing staff shortages.
“Employers are eager to train these students,” Madi explained. “What they say is, ‘Let’s host these students. We can train them, and then if we like them, we will hire them.’”
Addressing a Critical Need in Healthcare
Stepful’s rapid growth is a testament to the demand for innovative solutions in healthcare staffing. From a modest start of 50 students in its first year, the company anticipates enrolling 30,000 students in 2024.
By offering an affordable, flexible, and tech-powered training model, Stepful is helping to alleviate the healthcare staffing crisis while empowering individuals to secure stable, well-paying careers. With its recent funding, Stepful plans to expand its reach and enhance its AI capabilities, solidifying its position as a leader in healthcare training innovation.
