Stepful Secures $31.5 Million Series B Led by Oak HC/FT to Address U.S. Healthcare Worker Shortage

Investment will Expand Scalable Programs and Partnerships with Healthcare Providers, Aiming to Close Critical Workforce Gaps by 2025

Stepful, the company dedicated to re-imagining healthcare training for allied health professional jobs, today announced it has raised $31.5 million in Series B funding. The round was led by Oak HC/FT with participation from Y Combinator, Reach Capital, AlleyCorp, SemperVirens, Company Ventures, Green Sands, ECMC Education Impact Fund, Intermountain Ventures, and Cedar Pine.

Today, Stepful offers educational training programs for both entry-level positions, including medical assistants, medical admins, and pharmacy technicians, and advanced programs for licensed practical nurses and surgical technicians. Unlike other trade schools, Stepful is an AI-powered learning platform with an accelerated format, lower costs, and placement for students who successfully complete the program. To date, the company has seen strong growth in its business, expanding from 50 students in 2021 to more than 30,000 enrollees projected in 2024. With this new funding, Stepful will expand its B2B offering and continue growing its health system partnerships.

Stepful’s platform is designed for working adults, particularly from historically underserved communities, providing virtual instructor-led courses that include live, cohort-based learning sessions and one-on-one coaching for those looking for entry-level positions in hospitals and healthcare settings. Additionally, the program’s bite-sized, asynchronous, interactive learning modules allow students to manage their studies alongside other commitments, while AI-powered feedback offers personalized support and outreach to ensure students don’t fall behind.

“This funding supports our mission to make healthcare training more accessible while addressing the U.S. shortage of healthcare workers,” said Carl Madi, CEO at Stepful. “It enables us to reach more students, ensuring that our graduates can transition into high-demand roles more quickly, grow our practical nursing offerings, and open new schools in key regions. We’re also enhancing our capabilities to better serve healthcare employers by adding tools for screening and vetting, analytics, on-site learning support and to pursue strategic acquisitions.”

The U.S. healthcare system will face a shortage of 3.2 million allied healthcare workers, nurses, and mental health professionals by 2026, according to the American Hospital Association, which could result in $86 billion in increased expenses and employee burnout. Traditional educational models, such as community colleges and trade schools, often require in-person attendance, have enrollment caps, and are costly—limiting their scalability in addressing these shortages.

Stepful’s approach has yielded industry-leading outcomes, including an 87% NHA CCMA exam pass rate—ten points higher than the national average—and a 75% completion rate. Stepful currently serves 13,000 monthly active students and boasts a network of over 8,000 healthcare partners where students complete hands-on clinical training.

“Stepful is addressing a significant unmet need to mitigate the health professional labor shortage, and they’re doing it while creating a win-win situation for both students and employers,” said Vig Chandramouli, Partner at Oak HC/FT. “The quality and outcomes of Stepful’s program have proven to be superior to current options with higher graduation rates, certification pass rates, and job placement rates, all at a lower cost. We’re proud to partner with Stepful as they scale their impact.”

As the $28 billion healthcare training market continues to grow amidst labor shortages, Stepful is positioning itself as an end-to-end workforce solution for healthcare employers, adding tools like online training, on-site learning support, and analytics. By collaborating with major healthcare providers like Providence, Ohio State University Physicians, and Johns Hopkins All Children’s Hospital, Stepful’s growing B2B segment is positioned to help systems directly feed their labor pool with well-trained, skilled workers.

About Stepful

Stepful offers accelerated, affordable training programs for healthcare roles. Through partnerships with healthcare providers, Stepful connects students to job opportunities after certification. Stepful was co-founded by Carl Madi, Tressia Hobeika, and Edoardo Serra. For more information, visit stepful.com.

About Oak HC/FT

Oak HC/FT is a venture and growth equity firm specializing in investments in fintech and healthcare. Using partnership as a foundation, Oak HC/FT guides companies and founders at every stage, from seed to growth, to create businesses that make a measurable and lasting impact. Founded in 2014, Oak HC/FT has invested in over 85 portfolio companies and has over $5.3 billion in assets under management. Oak HC/FT is headquartered in Stamford, CT, with an office in San Francisco, CA. Follow Oak HC/FT on LinkedIn and X and learn more at oakhcft.com.

Originally announced November 13th, 2024