See the pitch deck 2 Palantir alums used to convince fintech VCs to bet $58 million on a new kind of health insurance company

Angle Health cofounders Tylon Wang and Anirban Gangopadhyay
  • Angle Health wants to use tech to transform health insurance where other upstarts have failed.
  • Companies like Bright Health and Clover Health are slowing their growth as their stocks tumble.
  • Angle Health raised $58 million to disrupt employer-sponsored health benefits using this pitch deck.

Health-insurance startups have had a rough go of it lately.

Companies like Oscar Health, Clover Health, and Bright Health raked in investor cash on the promise that they could transform health plans with tech, and each went public in 2021 at a lofty valuation.

But their attempts at transformation have fallen short as they’ve tumbled in the public markets and their losses have deepened, forcing them to slow their growth to find ways to break even and stay afloat.

Digging into health insurance comes with plenty of challenges for a startup, since health insurers typically require lots of capital to function and new companies run up against massive incumbents like UnitedHealthcare and Elevance Health.

Angle Health, however, thinks it has what it takes to succeed where others failed — and the San Francisco-based startup just landed a chunk of capital to prove it.

In January, Angle Health said it had raised $58 million in Series A funding led by the fintech venture firm Portage. The round included investments from PruVen Capital, Wing Venture Capital, SixThirty Ventures, Mighty Capital, Wormhole Capital, Mindset Ventures, Aloft VC, Blumberg Capital, Correlation Ventures, TSVC, Y Combinator, and Waseem Daher, the founder of Pilot.

Taking on employer-funded health-insurance plans

Ty Wang, Angle Health’s CEO and cofounder, said there are a few key things it’s doing differently from its predecessors.

For one thing, the 29-year-old said, the company is focused on slower, more sustainable growth, which is particularly important to investors as digital-health startups face the consequences of their growth-at-all-costs strategies in a market downturn.

“We’re looking to make sure we have all of our processes, operations, and things like medical management and care navigation really locked down before we scale to hundreds of thousands or millions of members, so we don’t end up in similar situations to some of these now public startup health plans,” Wang said.

Angle Health is also focused on a different part of the health-insurance market. While some of the upstarts have worked with people who get their health plans through Medicare Advantage or the Affordable Care Act marketplace, Angle Health sells its plans to other companies, especially other startups with up to 500 employees. 

“It’s a very different risk profile,” Wang said, adding that the company had done “pretty much no direct marketing.” Instead, insurance brokers and other agencies work for a fee to create contracts between Angle Health and employers. Wang said the costs associated with getting those contracts are much less than they would be if Angle Health were to market itself directly to consumers.

The company’s January Series A round included previously unannounced funding as well as a Series A-1 extension round, Wang told Insider. He added that the extension round doubled the valuation Angle Health notched from its initial Series A raise and brought the startup’s total funding to $62 million.

Angle Health provided Insider with the pitch deck it used to raise $58 million in Series A funding from Portage and other investors. The startup removed details about its financials — including projections — and membership figures before sharing the deck.

Here’s the pitch deck Angle Health used to land a $58 million Series A.

Angle Health works with employers to provide health-insurance plans to workers.

Angle Health

Its cofounders, Ty Wang and Anirban Gangopadhyay, met at the data-analytics company Palantir. They brought Angle Health to the startup accelerator Y Combinator in 2020.

Angle Health

Wang was 26 and Gangopadhyay was 27 when they started Angle Health. They’re now 29 and 30.

“What we’re building here is not just a health-insurance company or a tech platform but really a full-stack healthcare company,” Wang said, adding that the startup wants to be the first point of contact for its members for all their healthcare needs.

Angle Health

Angle Health says its platform uses artificial intelligence to speed up certain tasks like gathering and validating information to evaluate how much coverage a person might need.

Angle Health

Wang said Angle Health wants to make health benefits more accessible to consumers by connecting vendors that handle different services like telehealth and health savings accounts on a single platform.

Angle Health

By the end of the third quarter of 2022, Angle Health provided its platform to just over 3,800 members in Utah, regulatory filings say.

Angle Health

This slide omits figures detailing Angle Health’s growth in areas like revenue and membership. Regulatory filings show that Angle Health raked in $9 million in revenue in the first nine months of 2022 and that its net losses totaled $1.8 million in the same period.

Angle Health

The costs of acquiring new customers through traditional methods like online advertising can rack up quickly for fledgling health insurers. Wang said Angle Health saves money by paying insurance brokers and other partners to get Angle’s employer contracts.

Angle Health

The slide includes redacted figures related to Angle Health’s primary distribution channels, membership, and premiums.

Angle Health launched first in Utah in 2021. Wang said Utah’s health-insurance market was promising because few insurance upstarts had tried to disrupt the market and the state is home to many of the small and medium-sized startups that are Angle Health’s core customer base.

Angle Health

The startup recently began working with employers in Arizona, Georgia, Indiana, Ohio, Missouri, and South Carolina. Wang said Angle has plans to expand to more states this year.

Angle Health

Angle Health removed figures related to membership and financial projections, as well as the state in which it plans to capture 1% market share.

Wang said Angle Health plans to triple or quadruple its membership and revenue this year compared with 2022.

Angle Health

Wang said Angle Health is planning to use the Series A raise to reach breakeven so the startup doesn’t have to rely on future venture fundraising to keep the business running. He said Angle Health has at least two years of cash runway after its Series A raise.

Angle Health