Candid Health has convinced investors that medical billing — healthcare's most despised back office — is an AI problem worth tripling down on. The startup announced a $120 million Series D on July 22, led by Sixth Street Growth with Oak HC/FT, 8VC and Y Combinator participating, at roughly three times its February 2025 Series C valuation. Total funding now exceeds $219 million.
The problem
The US spends about $280 billion a year on revenue-cycle management — the bureaucratic machinery of coding claims, submitting them, fighting denials and collecting payment. It remains stubbornly manual, error-prone and a leading cause of physician burnout.
The product
Candid sells an autonomous revenue-cycle platform: AI that handles billing, claims and collections end to end, replacing or overlaying legacy RCM software. It processes roughly $7 billion in claims annually for more than 200 healthcare customers.
The traction
Annual contracted run-rate revenue is growing 190% year over year, with 180% net dollar retention in 2025 — the kind of metrics that explain a tripled valuation in 18 months.
The founders
CEO Nick Perry — five years at Palantir leading healthcare work — and COO Doug Proctor, who built defense and intelligence systems there, founded Candid in 2019. The funding pace tells the story: a $29 million round in mid-2024, a $52.5 million Series C led by Oak HC/FT in February 2025, and now this — three raises in roughly two years. The thesis is now fashionable across health tech: the fastest AI wins in medicine are administrative, not clinical — no FDA approvals required, and the ROI shows up in the next billing cycle.