Archy, a San Jose-based AI startup designed to automate and unify dental practice management, has closed $20 million in Series B funding. The round was led by TCV, with participation from Bessemer Venture Partners, CRV, Entrée Capital, and 25 practicing dentists as angel investors.
Founded in 2021 by Jonathan Rat, a former product leader at Meta and Uber, Archy is on a mission to replace outdated, fragmented dental software systems with a unified cloud-native AI assistant that improves operational efficiency and reduces errors.
“I realized there was a massive need and opportunity for a modern, cloud-based software platform and set out to build that,” Jonathan Rat, founder and CEO of Archy told Crunchbase News. “I also realized bigger tech players have been building software for the larger healthcare market but overlooked the $500 billion dental industry.”
Most dental practices today rely on outdated, fragmented software systems, with some being 20-40 years old. These systems are reliant on in-house servers prone to failure and security risks. Staffing shortages and high turnover cause operational challenges, forcing staff to spend countless hours verifying insurance manually, chasing unpaid claims, and re-entering data into multiple disconnected platforms.
The result is an average of 80 hours spent on redundant administrative tasks every month at a mid-sized dental practice, on top of continuous training for new hires wading through antiquated software. This inefficiency leads to errors, denied claims, revenue leakage, and staff burnout.
Archy’s Unified Platform
Archy responds to these challenges with a cloud-based, all-in-one platform replacing more than five different outdated systems. It integrates scheduling, billing, charting, prescriptions, payments, insurance claims, and patient communication into a single interface accessible from anywhere. Its intuitive interface is designed for easy onboarding, allowing dental practices to hire personnel without extensive dental software experience.
The platform’s AI-powered agents automate time-consuming manual tasks:
- Archy Verify: Instantly checks insurance eligibility and benefits, drastically reducing time spent on verification and manual data lookup.
- Archy Revenue: Automates billing, claim submissions, and payment collection, handling follow-ups to maximize revenue capture.
- Archy Scribe: Provides hands-free, real-time clinical charting and note-taking, freeing dentists to focus on patients rather than paperwork.
- Archy Connect: Manages patient communications and appointment scheduling, sending timely reminders and follow-ups without human intervention.
- Archy Insight: Transforms vast practice data into actionable analytics and custom dashboards, empowering managers with real-time insights to optimize operations.
- All components are securely hosted in the cloud, benefiting from automatic updates, backups, HIPAA-compliant data protections, and remote accessibility, freeing practices from server maintenance and outdated infrastructure.
Archy’s effectiveness is shown in its rapid adoption and measurable cost savings. The platform processes over $100 million annually in payments for dental customers and reports 300% year-over-year growth.
“Our offices previously used Dentrix for 35 years and Dexis for 17 years before switching to Archy,” said Thomas DeChellis DDS, Owner of DeChellis & Stonestreet Dentistry. “Archy makes it simple to manage the multiple dental offices in one platform, from x-rays, to charting, to patient communications and billing. We have trained team members ranging from 20 to 68 years old to use Archy within 1-2 days. Switching to Archy saved our offices over $50,000 in hardware upgrades and IT costs in year one.”
Solving a Real Problem
Jonathan Rat started Archy after witnessing firsthand the struggles his wife, a dentist, faced managing multiple legacy software systems. Frustrated by broken tools and inefficient IT support, Rat sought to build a truly modern dental practice solution, one that feels more like a helpful teammate than a cumbersome tool.
“Dental practices are getting squeezed from every direction, there’s a massive staffing shortage, hiring costs keep climbing, and insurance reimbursements keep falling,” said Rat. “We’re not just building software; we’re building an AI-powered teammate that helps practices do more with smaller teams, turning the staffing crisis into a competitive advantage.”
Joining him is CTO Benjamin Kolin, whose engineering leadership experience spans Uber, VMware, and Yahoo. Together, they focus on delivering AI-first innovation specifically tailored to dentistry’s unique operational needs.
The new $20 million capital infusion will accelerate hiring in engineering, AI research, and GTM functions as Archy expands its market presence.
“Dental is one of the largest specialties in healthcare, but most dentists are stuck running servers in their closets and piecing together multiple tech vendors, which no SMB should have to do. Beyond just bringing customers to the cloud, Archy enables dental offices to do more with less via its novel intelligence, automation, and ease of use,” said Austin Levitt of TCV. “The Archy team combines engineering excellence with empathy for dentists, positioning them to reimagine the way the industry works in the AI age.”
The sizable Series B round and involvement of practicing dentists as angel investors show both market demand and validation by end users.
Archy plans to continue expanding its AI capabilities, including integrations with advanced dental imaging analysis (with partners like Pearl), real-time reporting, and enhanced automation features. By unifying previously siloed workflows into one intelligent cloud platform, Archy is showing us how dental offices should actually operate.
