Carl Madi has spent much of the last decade working for Uber and Handy, an online marketplace for cleaners. “I spent a lot of time convincing drivers, handymen and cleaners to join the gig economy,” he told TechCrunch. But when the pandemic hit, he saw many people lose their jobs overnight.

He noticed there was a significant shortage of medical assistants, a career that is recession-proof and offers attractive salaries and benefits. So, Madi (pictured above center) wondered if he could help cleaners become medical assistants.

“When I looked into it, I realized that most of the pathways are either trade schools or community colleges,” he said. “It can take up to two years and cost up to $20,000. »

In 2021, he teamed up with Tressia Hobeika (pictured left), who had previously worked at Udacity, to found Stepful, an AI-powered online program that trains people for entry-level jobs in four months in the healthcare field, such as medical assistants and pharmacy technicians. an average cost of $2,500.

Since then, Stepful has grown from just 50 students in its first year to 30,000 enrolled in 2024.

Madi says students like that Stepful balances flexibility and structure. Although students can do much of their learning asynchronously and in short bursts on their phones, they must attend a weekly instructor-led class and work in groups. “It’s a much more engaging way of learning,” Madi said.

After completing online courses, Stepful automatically matches students to one of its 8,000 partner clinics or hospitals across the country for one or two months of hands-on training.

Since there aren’t enough medical professionals, employers are eager to train these students, according to Madi. “What they’re saying is, ‘Let’s welcome these students.’ We can train them, and if we like them, we will hire them,” he said.

The company also boasts a 75% graduation rate, which Stepful achieves by having its AI send personalized messages to students who are falling behind. And if that doesn’t get people back on track, a human coach steps in to provide extra motivation. “People can feel that they are supported, nourished, and we see it,” Madi said.

Students aren’t the only ones flocking to Stepful. On Wednesday, the company announced it raised a $31.5 million Series B led by Oak HC/FT with participation from Y Combinator, Reach Capital, AlleyCorp and others. The funding comes less than nine months after Stepful raised its $12 million Series A round.

“We found that there is a huge demand for allied health professionals,” said Vig Chandramouli, partner at Oak HC/FT. In fact, the U.S. health care system is soon expected to be short 3.2 million workers, including allied health professionals such as medical technicians and assistants, as well as nurses and mental health professionals, according to American Hospital Association.

Oak HC/FT looked at other startups helping solve the healthcare workforce shortage, but found that staffing companies like Nomadic health have narrow gross margins and do not help increase the supply of professionals, Chandramouli said.

“What we liked about Stepful is that it takes people who work hourly, in most cases, and brings them into the health care field, where they enjoy stable salaries and “appropriate benefits,” he said. “They are also smart in how they leverage generative AI.

In other words, by leveraging GenAI, Stepful ensures that its metrics are more like a tech company with far fewer humans involved than a typical educational program.