Archy, an AI startup aiming to overhaul the ancient software running most dental offices, has closed a $20 million Series B funding round. The round was led by TCV, with participation from Bessemer Venture Partners, CRV, and Entrée Capital, signaling a significant bet on dragging the dental industry into the cloud.
The company, founded by ex-Meta and Uber product leader Jonathan Rat, is taking direct aim at the patchwork of outdated, on-premise systems that have dominated dental practices for decades. According to Archy, these disconnected tools are a primary source of burnout, errors, and inefficiency, costing a typical practice around 80 hours of administrative work every month.
"Dental practices are getting squeezed from every direction," said Rat, Archy's CEO. "We're not just building software; we're building an AI-powered teammate that helps practices do more with smaller teams."
The 80-hour problem
Most dental offices still rely on what TCV partner Austin Levitt calls "servers in their closets"—legacy systems like Dentrix that require constant IT maintenance, are prone to outages, and don't sync with other essential tools. This forces staff into a manual loop of calling insurers, retyping data, and chasing patients by phone, a process that becomes a nightmare amid industry-wide staffing shortages and high turnover.
Archy replaces this entire stack with a single cloud-based platform. It integrates scheduling, charting, billing, insurance claims, and patient messaging into one system. On top of this, it layers a suite of AI agents designed to automate the most time-consuming tasks. "Archy Verify" checks insurance eligibility, "Archy Revenue" handles claims and collections, and "Archy Scribe" takes hands-free clinical notes.
The approach seems to be working. The company is already processing over $100 million in payments annually and claims to be growing 300% year-over-year. For practices like DeChellis & Stonestreet Dentistry, switching from systems they had used for over 30 years saved them over $50,000 in hardware and IT costs in the first year alone.
With the new Archy funding, the company plans to expand its engineering, AI, and go-to-market teams to accelerate its push against the industry's incumbents.
