Archy secures $15 million in series A funding to transform dental practices with AI

Dental practices in the U.S. have been facing several significant challenges, including a staffing shortage that has reduced capacity by an estimated 10%. This issue could worsen as more than 30% of dental assistants and hygienists plan to retire in the next five years.

Enter Archy, a Silicon Valley-based startup developing cloud-based automation software aimed at streamlining dental operations. Archy’s solution replaces outdated, on-premises servers with a cloud-based platform that automates key functions such as insurance verification, billing, scheduling, and patient communication. By doing so, the platform helps dental practices improve efficiency and reduce costs tied to manual processes.

Today, Archy announced it raised $15 million in a Series A funding round led by Entrée Capital, with participation from Bessemer Venture Partners, CRV, Alven, and the 20VC Growth fund. The company plans to use the funding to enhance its product suite, incorporating more AI-driven tools to increase efficiency in dental practices. Archy is currently working with several hundred practices across the U.S.

In addition to staffing challenges, dental practices are dealing with reduced insurance reimbursements, which make it difficult to offer competitive salaries. About 75% of practices still rely on outdated servers, which hinder operational efficiency and pose security risks. Archy aims to address these problems by moving practices to the cloud and automating time-consuming processes.

The company’s integrated imaging solution stores X-rays and other images in real time, and its partnership with Pearl AI allows for AI-powered X-ray analysis. Archy also promises to reduce IT infrastructure costs and save practices up to 80 hours of administrative work per month.

Founded in 2021 by Jonathan Rat and Ben Kolin, both former Uber colleagues, Archy was inspired by Rat’s wife, a dentist frustrated with the inefficiencies of traditional dental software. The goal was to build a user-friendly system that would improve both patient care and practice management.

As of now, Archy has raised a total of $27 million in funding, with support from leading investors and entrepreneurs. The company is positioning itself as a key player in modernizing dental practice operations, particularly as it integrates more AI and machine learning features into its platform.

“Fewer staff, mounting workload, less revenue opportunities all while using antiquated systems presents a long-term challenge not only to dental practices, but also inevitably to dental patient care,” said Jonathan Rat, Co-Founder & CEO of Archy.

Rat added, “By integrating Archy, dental practices have an immense opportunity to reinvent how they manage the day-to-day workload, saving crucial time and cost which can be driven instead into business improvements, patient care, and outcomes. Archy’s automated overhaul of a dental practice’s operations helps develop and retain the workforce, and our aim is to become a linchpin for sustainable growth for the practice itself.”

While Archy’s solution tackles some of the industry’s most pressing operational challenges, the road ahead will likely involve convincing more practices to shift from legacy systems to its cloud-based platform. However, with growing adoption and significant backing from investors, the company appears well-positioned to continue making inroads in the dental industry.

“We are excited to join Archy on its journey as it revolutionizes how dental practices interact with and support their patients,” said Avi Eyal, Co-Founder and Managing Partner, Entrée Capital. “In a sector so deprived of innovation, Archy blends simplicity and automation and creates seamless integration across the dental practice, with fast implementation. Practices using Archy are already reporting significant improvement in efficiency, and increased customer satisfaction and better patient care delivery. We believe the market is ripe for disruption and that Archy is the company that will emerge as the leader in this sector.”

Archy Team