Angle Health raised $600 million in equity financing, reaching a total valuation of $2.7 billion, to continue expanding its artificial intelligence-native healthcare benefits platform for small businesses.
The financing consists of a $200 million series C funding round and $400 million tender offer, the company says. The startup’s valuation has more than doubled since it’s December series B round when it raised $134 million, the Wall Street Journal reported. The company raised a $58 million series A round in January 2023.
Vitruvian Partners led the round, with participation from new investor Town Hall Ventures and existing investors Blumberg Capital, Portage Ventures, PruVen Capital and Y Combinator. The round is expected to close later in September.
Vitruvian Partners partner Jeremy Gelber said in a statement Angle has “replaced the archaic systems and manual workflows of a century-old industry with a healthcare platform built for the AI-era.”
“Its combination of technology, industry-leading growth and retention, and financial stability in an increasingly volatile market is proof that the team at Angle Health has built something truly needed,” Gelber said. “At Vitruvian, we focus on aligning capital with change, so we are thrilled for the opportunity to help Angle Health scale its impact and expand access to high-quality healthcare for working Americans.”
Angle Health offers a digital-first care navigation experience with customizable plans for employers driven by its AI-enabled platform. The platform integrates medical and pharmacy data, demographic information, real-time claims patterns and population health data to help employers spot risk and design interventions accordingly.
The company currently serves more than 5,000 employers with customizable plans in 47 states. It sees nearly $1 billion in annualized premium-equivalents and boasts 120% year-over-year growth, according to executives.
“Access to great healthcare shouldn’t depend on the size of the company you work for,” said Ty Wang, Angle Health CEO and co-founder in a statement. “Small businesses employ tens of millions of Americans, yet they have historically had the least options available to them for healthcare coverage and almost no control over its costs. We built Angle Health to fix that.
Moreover, Wang said the new capital allows the company to “reach more of the local businesses that power our country and continue to deliver a personalized, higher-quality, more affordable healthcare experience.”
Some areas to be supported by the funding include continued investment in Angle’s platform and “seamless navigation across hyper-local, condition-specific care options.”