Angle Health Raises $134M to Arm SMBs Against Rising Healthcare Costs

Angle Health, an AI-powered insurance startup, has secured a $134 million Series B round to scale its benefits platform for small businesses. The investmen boosts the company's total funding to nearly $200 million as it challenges legacy carriers amid soaring healthcare costs.

• An expensive problem: Employers are bracing for the largest spike in healthcare costs in over a decade, a trend hitting small businesses particularly hard. Angle Health was founded by former Palantir engineers to target this underserved market with customizable plans typically reserved for large enterprises.

• Rebuilding the backend: "The healthcare benefits ecosystem wasn't designed for the small-to-medium-sized businesses that employ nearly half of America's workforce," said CEO Ty Wang. "We're rebuilding healthcare infrastructure and care pathways to give all employers access to the comprehensive benefits historically reserved for large enterprises."

• Putting up numbers: The company claims significant momentum since its last fundraise in 2022. It reports a 26-fold increase in revenue and has expanded to serve over 3,000 employers in more than 40 states.

Lead investor Portage is betting that Angle Health’s tech-forward approach can cut through the industry's notorious red tape by using "human-centered AI to rebuild the operational and financial infrastructure behind healthcare benefits,” according to General Partner Ricky Lai. The investment comes as Fitch Ratings issues a “deteriorating” outlook for the U.S. health insurance industry and regulators review billing practices at giants like UnitedHealth. Meanwhile, other major players aren't sitting still, with UnitedHealth's own Optum Ventures backing care navigation startups, signaling a wider industry push into the space.