Procode AI Raises $4M in LA
Los Angeles-based Procode AI has raised $4M in a new funding round for its AI-focused tools. The quiet funding round adds to the growing list of early-stage AI startups attracting capital in the emerging LA tech scene.
The funding round was led by New York-based Story Ventures, with participation from CHAP Health Ventures and Progression Fund. An angel investor in the round was Dmitry Shevelenko, the Chief Business Officer of the AI-native search engine, Perplexity. Procode AI was founded in 2024 by Jeff Cripe, Dr. Kameron Rezzadeh, and James Baez-Silva. Dr. Rezzadeh is a surgeon, bringing firsthand experience of the problems the company aims to solve with its technology. The company's mission is to create the leading AI-powered revenue cycle management (RCM) company specifically for surgeons in private practice. The company's core product is an AI-powered platform designed to automate and streamline medical billing for surgeons. Its "Coding Copilot" tool translates surgical reports into the correct billing and diagnostic codes, a process the company claims is up to 90% faster than manual coding. The platform also includes tools for managing accounts receivable and denials. In a strategic move, Procode AI also announced the acquisition of The Auctus Group, a prominent U.S. biller for plastic surgeons and a top-three biller in dermatology. This acquisition immediately provides Procode AI with a substantial customer base of over 300 providers and a large dataset to train its AI models. The fresh capital is earmarked for expanding the company's coding automation technology and further developing the Auctus Provider App. Since acquiring The Auctus Group, Procode AI has already increased annual recurring revenue by $2 million in just five months by reducing claim denials and speeding up reimbursements. This funding round is part of a larger trend in the Los Angeles tech scene, which saw AI companies raise $2.1 billion in 2025. The city is becoming a significant hub for AI talent and investment, ranking second in the U.S. for AI funding in the third quarter of 2024.
