Angle Health Raises $134 M to Scale AI-Powered Health Benefits for Small and Mid-Sized Employers

In a major boost to employer-sponsored healthcare innovation, Angle Health secures $134 million in Series B funding to scale its AI-native health benefits platform, a move that promises to democratize access to comprehensive, tech-driven health coverage for small and mid-sized businesses across the United States.

A New Approach to Healthcare for SMBs: What Angle Health Offers

Angle Health, co-founded by former engineers from Palantir, builds a vertically integrated health-benefits infrastructure that leverages artificial intelligence to redesign insurance and benefits administration.

Rather than rely on legacy systems that often burden small businesses with complex underwriting, long wait times, and unpredictable costs, Angle Health offers tools like its “Benefit Builder” and “Quote-to-Card” platforms that enable brokers and employers to generate custom, underwritten health plans in minutes using just basic census data.

By integrating medical, pharmacy, demographic, and real-time claims data, Angle’s AI models predict future risk, allowing employers to offer more stable, affordable plans often with lower rate hikes than industry average, and with enhanced transparency and predictability.

Funding Details & Investor Confidence

The new $134 million round was oversubscribed and led by Portage, with participation from investors including Blumberg Capital, Mighty Capital, PruVen Capital, SixThirty Ventures, TSVC, Wing VC and Y Combinator.

Combined with earlier rounds, total funding for Angle Health is now approaching $200 million, a reflection of investor confidence in the company’s model and its growth trajectory.

Demonstrated Traction and Impact on Employers & Employees

Since its last financing round, Angle Health claims a dramatic 26× increase in topline revenue.

Today, it serves over 3,000 employers across 44 U.S. states.

The company also reports maintaining an industry-leading renewal rate above 80%, a member-satisfaction score around 90% through the first three quarters of 2025, and median rate increases about 36% lower than the industry median for small businesses, strong indicators that its AI-enabled model delivers value where traditional plans often struggle.

According to Angle’s leadership, their goal is to give smaller employers and their employees access to comprehensive health benefits historically available mostly to large enterprises but this time powered by modern infrastructure, data, and AI.

Why This Matters: Addressing a Critical Gap in the U.S. Employer-Sponsored Healthcare

Healthcare costs for employers and employees in the U.S. are rising sharply, with industry forecasts indicating some of the largest increases in decades.

Small and mid-sized businesses (SMBs), which employ a substantial portion of the workforce, have often been underserved facing limited bargaining power, high premiums, and opaque plan options under legacy insurers.

By combining AI-powered underwriting, real-time risk data, and streamlined benefits management, Angle Health aims to fill this gap, potentially redefining how healthcare benefits are delivered to millions of Americans working at SMBs.

What’s Next: Scaling Up & Further Innovation

With the new funding, Angle Health plans to scale operations rapidly expanding its employer reach, improving benefit offerings, and investing further in its AI infrastructure and care-navigation capabilities.

The success of its “Benefit Builder” and “Quote-to-Card” tools could encourage wider adoption by brokers and small- to mid-sized enterprises. As regulatory and economic pressures push more businesses to manage healthcare costs carefully, Angle’s model may become increasingly attractive.

Moreover, by deploying predictive analytics and risk assessment at scale, it could help employers proactively manage healthcare costs potentially offering more affordable, sustainable health benefits over the long term.

Conclusion

Angle Health’s $134 million Series B raise is a strong signal that AI-native health-benefits platforms are gaining serious traction especially among small and mid-sized employers seeking transparency, affordability, and flexibility. By combining deep AI capabilities with customized, employer-friendly health plans, Angle is positioning itself to reshape the healthcare benefits landscape for millions of workers who have traditionally been underserved.

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