Procode AI, an AI-powered revenue cycle management (RCM) company focused on improving medical billing and coding for surgical practices, has raised $4 million in venture funding as it emerged from stealth alongside the acquisition of healthcare billing firm The Auctus Group. The round marks the company’s formal market entry and supports its plan to scale its AI-driven billing infrastructure across specialty medical practices in the United States.

The funding round was led by Story Ventures, a venture capital firm known for investing in early-stage companies building foundational AI and data infrastructure. Participation also came from CHAP Health Ventures, Progression Fund, and angel investor Dmitry Shevelenko, Chief Business Officer at Perplexity. Together, the investors backed Procode AI’s mission to modernize how surgical practices handle coding, claims, and reimbursement workflows.

Founded in 2024 by Jeff Cripe, Dr. Kameron Rezzadeh, and James Baez-Silva, Procode AI develops intelligent software designed to automate and accelerate the complex revenue cycle processes that underpin healthcare reimbursement. Its flagship product, Coding Copilot, uses artificial intelligence to translate surgical operative reports into accurate billing and diagnostic codes, significantly reducing manual effort and improving accuracy for medical coders.

Alongside the funding announcement, Procode AI acquired The Auctus Group, a long-established medical billing company specializing in plastic surgery and dermatology. The acquisition provides Procode with immediate access to more than 300 providers already using Auctus billing services, giving the startup a strong distribution channel for its AI tools from day one.

The company’s platform also includes an AR/Denials Management Engine that helps automate accounts receivable workflows, payment posting, and denial resolution. In addition, Procode AI offers the Auctus Provider App, which gives surgeons real-time visibility into financial performance, claims status, and reimbursement data through a mobile interface. These tools are designed to reduce administrative burden while improving cash flow predictability for private practices.

Procode AI’s leadership emphasizes that traditional medical billing systems are often slow, error-prone, and heavily dependent on manual coding processes. By embedding AI directly into these workflows, the company aims to reduce coding-related claim denials, shorten accounts receivable cycles, and increase overall reimbursement accuracy for providers.

The newly raised capital will be used to expand engineering and product development teams, enhance AI capabilities across specialties, and scale adoption of its platform among surgical and dermatology practices. A portion of the funding will also support the integration of The Auctus Group into Procode’s broader AI-powered billing ecosystem.

Investors in the round are betting on growing demand for automation in healthcare administration, particularly in high-complexity specialties like surgery, where coding errors can significantly impact revenue cycles. Procode AI’s approach combines software automation with an acquired billing services business, giving it both technology leverage and real-world operational data to improve its models.

With its $4 million funding round and strategic acquisition, Procode AI positions itself as an emerging player in the healthcare AI infrastructure space, aiming to reshape how private practice surgeons manage reimbursement and financial operations.

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