Announcing our $4M seed round to build health insurance that doesn't get in the way
We're thrilled to announce our $4 million seed round, led by Upfront Ventures with participation from 8VC and General Catalyst. In just our first year, we've written mid-eight figures in premiums and partnered with top-tier reinsurers — including industry giant Nationwide — to deliver innovative health plans that prioritize long-term health outcomes over short-term cost-cutting.
Why we're building Arlo
Health insurance premiums jumped 6% in 2024 alone, continuing a decade-long trend that has seen costs rise 49% – far outpacing general inflation. Small businesses, which employ nearly half of America's private workforce, have been hit particularly hard, often forced to choose between absorbing unsustainable costs or shifting the burden to employees through higher deductibles. The impact on employees is severe: delayed medical care, unexpected claim denials, hours spent battling insurance bureaucracy, and growing frustration with a system that seems designed to restrict rather than enable access to care. While large employers leverage their size to negotiate better rates and customize their health plans, small businesses lack this bargaining power and are left with few options from legacy carriers.
Arlo provides affordable, self-funded health insurance coverage for small and mid-sized businesses, built on value-based care and cost transparency. Our AI-enabled underwriting technology allows us to create a new model that:
- Rewards preventative care to keep employees healthier and costs lower
- Aligns incentives so employers, employees, and providers all benefit
- Identifies risks early for proactive, better health outcomes
"The challenge in healthcare isn't just rising costs—it's misaligned incentives," said Jan-Felix Schneider, Co-Founder and CEO of Arlo. "By building new risk transfer and AI-driven underwriting infrastructure, we're creating a system where investing in preventive care and health initiatives delivers both immediate savings and long-term stability for small businesses."
What excited Upfront Ventures, 8VC, and General Catalyst about Arlo
"Upfront is thrilled to support Arlo as they tackle one of the most pressing challenges in healthcare," said Kevin Zhang, Partner at Upfront Ventures. "With their underwriting technology, easy-to-use quoting for brokers, and a deep understanding of the small group market, Arlo is uniquely positioned to transform how small businesses access and manage health benefits. At a time when frustration with legacy carriers is high, Arlo is the right company at the right time to take on this $275 billion market opportunity."
The company's rapid growth has been driven by strong partnerships with leading benefits firms and a team bringing together expertise from Palantir, Finch, Gusto, and WTW. "Arlo has assembled a stellar team of disruptors and deep expertise to tackle this space, and we're excited to be part of the journey," said Sebastian Caliri, Partner at 8VC.
What This Funding Means
With this new funding, we will accelerate our mission to bring affordable, high-quality, long-term oriented benefits to small businesses across the country. We are actively hiring across engineering and sales roles while expanding our broker network to reach more small businesses nationwide.
About Arlo
Arlo provides value-based, level-funded health plans tailored for small and medium-sized businesses. Founded by Jan-Felix Schneider, former Palantir team lead, and Karthik Bhaskara, who previously headed engineering at payroll and benefits system integrator Finch, our company leverages innovative underwriting technologies and value-based care principles to deliver competitive benefits packages to companies with 10+ employees.
