SAN FRANCISCO, March 27, 2025 (GLOBE NEWSWIRE) — Taxo, the world’s fastest, most accurate data extraction and reasoning engine for healthcare administration, announced today it has raised a $5M seed round of funding. The round was led by Y Combinator, General Catalyst, and Character, with participation from prominent angels including Kulveer Taggar (founder of Zeus Living) and Yahya Mokhtarzada (founder of Rocket Money).
Taxo will use the funds to continue to develop its AI platform and hire for key roles.
“Taxo represents the next frontier in healthcare AI — not just automating paperwork, but transforming medical decision-making with unprecedented accuracy,” said investor Kulveer Taggar. “By reducing administrative burden by 90% while maintaining 98% decision accuracy, they’re addressing healthcare’s trillion-dollar efficiency crisis at its root, allowing medical professionals to reclaim their time for patient care.”
Today healthcare is burdened by systemic inefficiencies, forcing healthcare professionals to spend more time navigating paperwork than providing patient care. A reliance on manual workflows and unstructured data—like PDFs and faxes—creates error-prone, labor-intensive processes that drain resources and cost the industry trillions each year. This ultimately results in reduced service capacity, delayed treatment, and employee burnout.
Taxo is addressing this issue head on with its proprietary engine that automates the entire workflow pipeline—from data extraction to advanced reasoning and decision-making. It’s also fully compliant with HIPAA and SOC2 standards, and every decision it makes is explainable, with direct references to source documents. This transparency gives healthcare organizations the confidence to rely on it even in the most regulated environments.
Dr. Ahmed Kerwan, a practicing physician, experienced firsthand the immense burden of paperwork that detracted from his ability to provide care. Determined to find a solution, he pursued a fellowship at Harvard and MIT to explore the intersection of AI and healthcare. “We are thrilled to work with our legendary investors who have decades of expertise in technology. They understand our mission to dramatically improve efficiencies in healthcare administration,” said Ahmed Kerwan, Founder and CEO of Taxo. “We look forward to bringing Taxo’s AI to governments, hospital systems, and other large organizations who deal with messy healthcare data.”
About Taxo
Taxo is the world’s fastest, most accurate data extraction and reasoning engine dedicated to healthcare administration. Its proprietary engine automates the entire workflow pipeline—from data extraction to advanced reasoning and decision-making. Taxo uses its world-leading AI to dramatically reduce processing times and minimize errors for healthcare administration while ensuring every decision is transparent, compliant, and easy to audit. Taxo is used by leading healthcare organizations and government agencies around the world. Based in San Francisco, CA, Taxo is backed by Y Combinator, General Catalyst, Character, and other prominent investors.
Media Contact:
Kerry Metzdorf
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8813da53-3037-42cc-8b67-91da1beeaf30