Why We Invested in Stepful: Forging Healthcare Pathways and Tackling the Staffing Crisis

This article was originally published on LinkedIn.  

ECMC Group’s Education Impact Fund (EIF) is dedicated to investing in innovative companies that enhance educational and economic outcomes for underserved learners We are particularly interested in new training models that directly address critical workforce needs while delivery high ROI for learners.

As former operators and long-time funders and investors in career and technical education (CTE), we have long recognized the severe shortage of healthcare workers, which is projected to reach 3.2 million by 2026. There is a pressing need for improved training models for entry-level healthcare roles, as well as for more accessible pathways that allow these workers to upskill into advanced roles, such as nursing. However, the complexity of simultaneously reaching and supporting learners, providing effective education and clinical rotations, meeting accreditation and licensing requirements, and offering a product that is both accessible and affordable has proven to be quite challenging for emerging companies seeking to disrupt the traditional CTE paradigm.

In Stepful, a digital-first training provider for allied health careers, we have found a partner that both aligns with our fund's impact vision and that has proven itself up to the immense challenge ahead of truly reshaping US healthcare career training for the better.

Stepful’s mission is to create accessible pathways to healthcare careers regardless of background or circumstance. It has built a mobile-friendly, digital platform tailored to working adults. Its model combines instructor-led courses with personalized coaching, AI-driven feedback, a supportive peer community, career services, and hands-on training through 8,000+ clinical sites. Originally a B2C platform, it has grown into a comprehensive B2B workforce solution for employers, integrating vetting, screening, capability building, and analytics tools, while enhancing accessibility and ROI for students.

The outcomes speak for themselves. Stepful’s approach yields industry-leading NHA CCMA exam pass rates (87%) and completion rates (75%), with most graduates securing employment in healthcare for the first time and experiencing meaningful wage increases. By offering programs at a tenth of the cost of traditional allied health education along with partnering directly with employers, Stepful ensures that quality training is accessible to a broader audience. Notably, over 70% of it’s student population is low-income, and two-thirds do not have a bachelor’s degree, reflecting a strong commitment to inclusivity and accessibility.

By addressing the healthcare talent crisis, Stepful taps into a substantial market opportunity. Importantly, we believe the roles they train for are largely resilient to AI disruption, given the essential human-to-human, empathetic, and hands-on care required in allied health and nursing professions.

Led by CEO and co-founder Carl Madi, the leadership team brings deep operational experience and a proven ability to execute. Since our first conversation years ago, they have consistently delivered on their commitments, leveraging their strengths in go-to-market, digital learning, and technical development to deliver quality, flexible programs that meet learners where they are. Stepful’s remarkably capital efficient growth trajectory underscores the team’s operational excellence along with the outcomes they’re delivering to learners.

Stepful is uniquely positioned to transform healthcare training and address the critical shortage of qualified professionals. Its innovative approach, commitment to underserved communities, and exceptional execution make it an invaluable partner in building a more inclusive, sustainable healthcare workforce. EIF is proud to support Stepful’s mission to empowers learners with accessible pathways to healthcare careers.

Read more about their recent financing round on Business Wire and Techcrunch.