Former UK physician Ahmed Kerwan has launched Taxo, an AI startup that addresses one of healthcare's most persistent challenges: administrative overload. The San Francisco-based company recently secured $5 million in seed funding from prominent investors including Y Combinator, General Catalyst, and Character Capital.

From Clinical Practice to Tech Innovation Kerwan's transition from medicine to entrepreneurship was driven by firsthand experience with healthcare's paperwork crisis. "I spent just three hours daily with patients," he recalls. "The rest was consumed by insurance claims and documentation." This frustration inspired Taxo's development - a solution that stands out in the crowded healthcare AI space through its unique "reasoning engine."

Image Source: AI-generated image, licensed from Midjourney

The Power of Explainable AI Unlike conventional AI tools that function as black boxes, Taxo's system provides transparent reasoning for its decisions. This explainability has proven crucial for gaining medical professionals' trust. The technology leverages large language models from OpenAI and Anthropic but adds a specialized medical layer trained on proprietary datasets.

"Our approval rates reach 98%," Kerwan notes, significantly outperforming the industry average of about 80%. This success stems from the system's ability to minimize AI hallucinations - a persistent challenge in healthcare applications.

Strategic Advantages and Rapid Growth Taxo has cultivated competitive advantages through access to specialized medical data that most startups cannot obtain. "We're building something that can't be easily replicated with each new model release," Kerwan explains.

The company's traction is notable: within six months of launch, Taxo surpassed $1 million in annual recurring revenue according to TechCrunch. Currently serving approximately 15 clients ranging from clinics to government agencies, the startup is positioned at the forefront of what investors see as the next wave of AI adoption beyond foundational models.

Changing Medical Professionals' Perspectives Kerwan acknowledges initial skepticism among physicians following ChatGPT's release. "Doctors need to understand why an AI makes specific recommendations," he emphasizes. Taxo addresses this by showing exactly how conclusions are reached - a feature Kerwan believes will accelerate adoption in risk-averse medical environments.

The ultimate goal? "Freeing doctors to focus on what matters most - patient care," says Kerwan as Taxo prepares to scale its operations with the new funding.

Key Points

1. Taxo's AI platform reduces healthcare administrative burdens with 98% pre-authorization approval rates
2. $5 million seed funding secured from top-tier investors including Y Combinator
3. Unique "reasoning engine" provides transparent decision-making processes
4. Combines existing LLMs with proprietary medical data layers
5. Achieved $1M ARR within six months of launch