Penguin Ai, a Palo Alto, CA-based healthcare AI company tackling administrative inefficiencies, has raised $29.7 million in funding.
Investors
The round included $25 million Series A led by Greycroft. Other participants in the financing include UPMC Enterprises, SemperVirens, Snowflake Ventures, Watershed Ventures, Horizon Mutual Holdings, ManchesterStory, Overwater Ventures, California Health Care Foundation, Multiball Capital, Canvas Prime, Plug and Play, and several angel investors.
Greycroft is a venture capital firm that invests in early- to growth-stage companies. The firm manages over $3 billion in capital and has invested in more than 400 companies since its founding in 2006. Headquartered in New York, NY, with additional offices in Los Angeles, CA, San Francisco, CA, and Menlo Park, CA, the firm often invests at various stages of a company’s lifecycle, from seed to pre-IPO rounds. Greycroft also manages separate funds dedicated to both early-stage and later-stage investments.
Penguin Ai Use of Funds
The funding will support hiring, product development, and scaling deployments with healthcare payers and providers.
About Penguin Ai
Penguin Ai is a healthcare AI company focused on transforming operations for healthcare payers and providers by leveraging cutting-edge generative AI technology. Its flagship platform combines task-specific small language models (SLMs), digital workers and agents, and a comprehensive healthcare AI platform to streamline administrative processes, including prior authorizations, claims processing, medical record summarization, and appeals management. Designed to enhance operational efficiency, Penguin Ai leverages advanced AI models, compliance capabilities, and digital workers and agents to transform how healthcare enterprises manage their data and operations. Headquartered in Palo Alto, CA, Penguin Ai is on a mission to reduce the $1 trillion annual cost of healthcare administration inefficiencies.
Funding Details
Company: Penguin Ai
Raised: $29.7M
Round: Unknown
Funding Date: September 2025
Lead Investor: Greycroft
Additional Investors: UPMC Enterprises, SemperVirens, Snowflake Ventures, Watershed Ventures, Horizon Mutual Holdings, ManchesterStory, Overwater Ventures, California Health Care Foundation, Multiball Capital, Canvas Prime, Plug and Play, John Santelli, Eric Larsen
Company Website: https://www.penguinai.co/
Software Category: Healthcare AI / Generative AI Platform
Source: https://www.prnewswire.com/news-releases/penguin-ai-secures-29-7m-in-venture-funding-to-tackle-the-1-trillion-administrative-burden-in-the-healthcare-industry-302553214.html