Ethermed, a healthcare technology startup building AI-driven automation for prior authorization and medical-necessity workflows, raised $8.5 million in Series A funding to expand its enterprise platform and scale its growing network of health-system partners.
Enfield Capital Partners and Blue Marlin Partners co-led the investment round with participation from Jumpstart Ventures, Healthliant Ventures, Woodard Family Office, and Gaingels.
Including the latest funding round, Ethermed has raised over $15 million in funding to date. The startup previously secured a $6.5 million seed round.
Since its inception, Ethermed has integrated with leading EHR systems and processed millions of prior-authorization transactions, building a growing customer base across both providers and payers and demonstrating measurable reductions in denials and staff workload.
“Ethermed’s technology directly addresses one of the most painful bottlenecks in healthcare,” said Todd Stern, CEO at Enfield Capital Partners. “By combining deep clinical intelligence with scalable automation, Ethermed is redefining how prior authorization can work—fast, compliant, and patient-centered.”
Digital health companies have secured more than $180 billion in funding to date, driven by AI-powered healthcare workflow automation startups, according to our recent Funding Database.
Notable recent digital health funding rounds include:
- Worki, a San Francisco-based healthcare workforce productivity visibility startup, raised $2.75 million in pre-seed funding led by Redesign Health and Healthliant Ventures, the venture arm of Tanner Health.
- Joyful Health, a provider of AI financial infrastructure for healthcare revenue operations, raised $17 million in Series A funding to build a financial operating system for healthcare providers.
- Luminai, a provider of an AI-powered healthcare workflow automation platform, raised $38 million in a Series B funding round, bringing its total funding to date to $60 million.
- Keebler Health, a clinical documentation startup, raised $16 million in a Series A funding round to accelerate commercial growth in the US. Including the Series A round, Keebler Health has raised $23 million to date.