Angle Health, a health benefits startup founded by two former Palantir engineers, has raised $600 million at a $2.7 billion valuation in a deal led by London-based Vitruvian Partners. The company sells level-funded health plans to small businesses, some with as few as two employees.
“We did not set out to build another health insurance company,” co-founder and CEO Ty Wang told the Wall Street Journal, which broke the news. The aim, he said, was to stop “this kind of death spiral of cost within our healthcare system.”
Most of the round is a tender offer
The $600 million breaks into a $200 million Series C and a $400 million tender offer that lets employees and early backers sell shares, the company told TechCrunch. The Journal reported that the secondary priced at $2.5 billion, so the $2.7 billion headline applies to the fresh capital rather than the two-thirds of the round that changed hands between investors, as The Next Web pointed out. Town Hall Ventures joined existing backers Blumberg Capital, Portage Ventures, PruVen Capital and Y Combinator, which backed Angle in its winter 2020 batch. The round is expected to close later this month.
The raise comes less than ten months after a $134 million round led by Portage in December, and the Journal reported that the new mark more than doubles that valuation. Wang said the company wasn’t looking to raise, since it had little debt and was already growing.
How the plans work
Level-funded plans sit between fully insured coverage, where the carrier takes on all the risk at a higher, predictable price, and self-funded plans, where the employer covers claims and costs can swing. Businesses make predictable payments, are insured against higher-than-expected claims and can get part of any surplus back if costs stay low.
Angle calls itself the first AI-native healthcare benefits platform. Brokers use a tool called Benefit Builder to generate firm quotes in minutes from a staff census, and the system steers members toward cheaper settings for the same treatment, such as at-home infusions, freestanding imaging centers and international prescription sourcing. “Because of AI, they’re able to manage thousands of different designs,” said Jeremy Gelber, the Vitruvian partner who led the deal.
Angle says it serves more than 5,000 employers across 47 states and oversees close to $1 billion in annualized premium equivalents. It reports 120% year-over-year growth and four straight quarters of profitability on both an EBITDA and a net income basis.
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