Alterra Labs announced a $12.5 million seed round led by Oak HC/FT on November 10 to expand simulated healthcare environments for training and testing AI. The New York startup already has paid partnerships with several frontier AI labs, according to investor Flare Capital Partners.
Alterra recreates electronic health records and insurer portals, giving AI agents work that requires several decisions and actions. Clinicians define acceptable performance and assess mistakes, providing feedback for further training. Health systems can also use its evaluations to assess tools before deployment, according to Oak.
In a separate healthcare-administration benchmark described by Stanford researchers on October 19, GPT-5.4 in computer-use mode passed 82.8% of individual steps but completed just 26.7% of whole tasks. The HealthAdminBench tests used simulated healthcare software and synthetic patient data.
Founder and CEO Akash Kapoor started the company as ChartR in 2025 while attending Columbia Medical School. He told Fortune that models’ difficulties following patients over time and making a series of decisions pushed the business toward model developers. Kapoor left medical school in his final year to run Alterra full time.
Flare says more than 40 practicing clinicians work with machine-learning researchers to design Alterra’s tests. Each set of grading criteria is reviewed by multiple attending physicians.
Flare and Company Ventures also participated in the round. Flare says the financing will expand Alterra’s simulations, clinical expert network and commercial team.