Taxo Secures $5 Million Seed Funding for AI-Powered Healthcare Admin App

San Francisco-based Taxo, founded by former physician Ahmed Kerwan, has raised $5 million in seed funding. The round was led by Y Combinator, General Catalyst, and Character Capital. Taxo offers an AI-powered app designed to streamline administrative tasks for healthcare providers, including prior authorizations, patient intake, and medical billing. Taxo's AI "reasoning engine" transparently explains its decisions, increasing trust and prior authorization approval rates to 98%, compared to an industry average of 80%. Taxo, launched last year, reached $1 million ARR within six months and currently serves 15 customers.