Exclusive: Dental payments and payroll startup Archy raises $10M
Archy, a San Francisco-based payments and dental practice management platform, raised $10 million in new funding led by Bessemer Venture Partners and CRV.
Why it matters: Archy is trying to do for dentists what a sector-specific vertical SaaS company like Toast did for the restaurant industry, by bringing all aspects of running a practice into a single platform.
How it works: Archy provides a cloud-based platform to manage nearly all aspects of a dental practice, including patient engagement, payroll, practice management software, imaging, analytics, and payment processing.
- The startup seeks to replace expensive on-prem hardware and supplant dental service organizations (DSOs) by enabling dentists to more efficiently take care of most back-office functions by themselves.
- Archy is targeting new dental practices just getting started by offering its platform for free until they reach 500 patients. Afterward, it charges a flat $595-a-month fee per office.
Between the lines: Archy founder and CEO Jonathan Rat worked in payments for companies like Uber and Facebook, but he began building Archy soon after his wife launched her own dental practice.
- He claims that dentists in the U.S. lose an average of 15% of their bottom line from having to manage multiple subscriptions and use outdated software and hardware.
What’s next: Archy plans to explore new features like inventory management, teledentistry and machine learning to handle claims.
Of note: Other participants in the round include Alven, Adapt Ventures, 2.12 Angels, Diagram Collective, and individual investors like Instacart CEO Fidji Simo, former Uber CTO Thuan Pham, Nurzhas Makishev, and Somrat Niyogi.