Stepful raises $55M to scale AI-powered healthcare training programs
Stepful, an online healthcare training startup, secured $55 million in Series C funding to expand its AI-powered platform that trains workers for entry-level clinical roles. Oak HC/FT led the round, joined by new investors Foresite, Hearst Ventures and the Citi Impact Fund, along with existing backers SemperVirens, Y Combinator and Intermountain Health.
The company has now raised $105 million since its 2021 launch. It previously raised $31.5 million in Series B funding in November 2024.
The workforce shortage problem
The U.S. faces a projected shortfall of millions of health workers by 2030, including medical assistants, home health aides and nursing assistants. Health systems currently spend $97 billion annually on contract staffing because the credentialing and training pipeline has not been built to scale.
Traditional pathways to entry-level healthcare jobs require two years of community college or trade school training costing up to $20,000. This creates barriers for individuals seeking to enter the field.
How Stepful's model works
Stepful offers employer-sponsored, debt-free training programs. Health systems hire high school graduates, train them through the platform, and place them directly into jobs after certification.
The company's current programs include medical assistant, pharmacy technician, medical administration, practical nursing, dental assistant and surgical technician roles. The medical assistant program costs roughly 10 times less than traditional education and takes four times less time to complete, according to CEO Carl Madi.
Stepful integrates AI throughout its platform. The technology delivers personalized learning modules, conducts AI-powered clinical simulations using avatar-based patient encounters, and performs remote evaluations of students' hands-on clinical skills. Students receive at-home medical kits and real-time feedback without needing physical simulation labs.
Scale and partnerships
Stepful has graduated over 32,000 practice-ready healthcare workers since launching. The company works with more than 35 major health systems, including Ochsner Health, Providence Foundation Health Partners, Ohio State University Physicians and Mount Sinai.
Last year, Stepful acquired the St. Louis College of Nursing Careers to add accredited academic programs to its offerings.
Mount Sinai is establishing a specialized patient care associate training program through Stepful, focusing on workers for ancillary clinical support roles including electrocardiography, phlebotomy and direct patient care.
What's next
With the new funding, Stepful plans to expand its healthcare system partnerships and launch advanced degree programs in nursing and respiratory technology. The company also intends to expand its AI capabilities.
The employer-centered model offers a different path from traditional education. Madi said high school graduates trained through Stepful can reach six-figure salaries within six to eight years without taking on debt while working full-time.
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