Y Combinator insurance tech alum Angle Health hits $2.7 billion valuation

The deal behind Y Combinator insurance tech alum Angle Health

TechCrunch reports: Y Combinator insurance tech alum Angle Health hits $2.7B valuation. Angle Health has grown to 5,000 customers and become profitable, by helping small businesses get "level-funded" health insurance.

But health insurance startup Angle Health announced Friday that it raised a $200 million Series C, alongside a $400 million tender offer, at a $2.7 billion valuation. The round was led by Vitruvian Partners with participation from Town Hall Ventures, Blumberg Capital, Portage Ventures, PruVen Capital, and Y Combinator.

Why Y Combinator insurance tech alum Angle Health raised now

The tender offer allows employees to cash out some of their shares, the company told TechCrunch. Angle Health, a winter 2020 YC alum, helps small businesses obtain and manage what’s known as “level-funded health plans.” These are plans that land between fully insured and self-funded plans.

What the Y Combinator insurance tech alum Angle Health money

In fully insured plans, the carrier takes all the risks; such plans are more expensive but costs are predictable. See the full write-up from TechCrunch via the source link for quotes and complete context.

With self-funded plans, the company covers the expenses and costs can be unpredictable. With level-funded plans, businesses make predictable payments to carriers, are insured against higher-than-expected costs, and can potentially save money by getting a share of the surplus back if expenses stay low.

Competitive context for Y Combinator insurance tech alum Angle Health

Angle says these plans can make health insurance more affordable for small businesses. It’s an AI-powered platform that helps small businesses choose and manage plans, integrating with payroll and HR systems.

Open questions on Y Combinator insurance tech alum Angle Health

Topics Biotech & Health, Fundraising, In Brief, insurance tech, Startups, TC, Y Combinator October 13 – 15 San Francisco Get 50% off a second passThe Disrupt experience is meant to be shared. See the full write-up from TechCrunch via the source link for quotes and complete context.