Angle Well being’s $58 million Sequence A spherical will get the tech-enabled insurance coverage provider to profitability, CEO Ty Wang tells Axios.
Why does it matter: Unit economics—like a path to breakeven—have gotten more and more vital for early-stage well being tech corporations and their traders.
The way it works: Angle is a full-stack medical insurance provider delivering personalized healthcare advantages tailor-made to small to midsize companies.
- Together with offering advantages, the corporate provides care navigation to assist members entry behavioral well being, telehealth and illness administration companies.
- The corporate counts NFP, Gallagher, GBS/Leavitt, Aon and Hub amongst its prospects.
- Angle companions with Cigna to present its members entry to a nationwide community of well being care suppliers, Wang says.
Particulars: Angle generates “tens of thousands and thousands” in income, Wang says, declining to be particular.
- The spherical was led by Portage, with participation from PruVen Capital, Wing Enterprise Capital, SixThirty Ventures, Mighty Capital, Wormhole Capital, Mindset Ventures, Aloft VC, and Pilot founder Waseem Daher.
- The Sequence A was raised in two tranches, Wang tells Axios. Angle raised $21 million in fairness and $10 million in debt over the summer time earlier than Portage got here in to guide one other $27 million infusion, he says.
- Current traders Blumberg Capital, Correlation Ventures, TSVC and Y Combinator participated.
Word: Publicly traded “insurtechs” like Oscar Well being, Brilliant Well being Group and Clover Well being — most of which function within the direct-to-consumer medical insurance market and are thus circuitously competing with Angle — have pruned their market presence in a bid to achieve profitability .
What they’re saying: Angle’s customization differentiates it from different market gamers, Wang says.
- Small and medium-sized companies “are typically restricted to ‘off the shelf’ plans, which may make transitions complicated for his or her workers and disrupt present entry to care,” Wang says.
- “We are able to customise these well being plan packages for the employer based mostly on their wants,” he says, noting that 80% of Angle’s well being plans are tailor-made.
Between the strains: Portage has a protracted historical past of investing within the insurance coverage sector typically, however Angle is its first North American well being care play.
- “Our LP base consists of fairly just a few insurance coverage corporations which have robust relationship networks inside the well being care and medical insurance house,” says Portage associate Ricky Lai.
The intrigue: Angle sees itself as an eventual supplier of care, very like its bigger payor friends (cough, Optum), Wang says.
- “We primarily present the connectivity and the coordination round these advantages, whether or not they’re administrative or medical,” Wang says. “There’s undoubtedly a chance and a possible play there for additionally being the suppliers ourselves and delivering the precise medical care.”
State of play: Alongside main industrial insurance coverage carriers, impartial third-party directors like Collective Well being and Flume additionally serve the employer-based advantages market.
- Final yr, Flume Well being raised $30 million in Sequence A funding at a valuation of $100 million, whereas Collective Well being in 2021 collected $280 million in Sequence F financing at a $1.5 billion valuation.
- TPAs like these usually serve massive corporations (500 to 1,000-plus employees) which have the sources to internally design and supply personalized well being plans — and neither tackle full threat, Wang says.
- “Even third-party administrative companies, there are start-up well being plans that just do that, however they do not do the underwriting or they do not tackle the danger,” says Angle co-founder Anirban Gangopadhyay.