Devoted Health seeks new funding round at $25 billion valuation

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Devoted Health $25B funding

Highlights

Devoted Health is in talks for a new funding round at a $25 billion valuation, just months after its previous financing announcement.
Membership reached 466,000 as of January 2026, marking a 121% year-over-year increase as the company scales in Medicare Advantage.
Investor enthusiasm is driven by Devoted Health's proprietary AI platform Orinoco and rapid growth in government-funded Medicare Advantage revenue.

Funding talks build on earlier round

As first reported by Business Insider, the Waltham, Massachusetts-based startup is discussing a new capital raise just months after announcing its previous financing. The latest talks indicate a sharp increase in investor expectations for the company as it expands in Medicare Advantage.

Devoted Health was founded in 2017 by brothers Ed and Todd Park, both former healthcare executives. The company combines health insurance and medical care for older adults enrolled in Medicare Advantage, and uses its proprietary AI tool, Orinoco, to help coordinate care for members.

A company spokesperson said Devoted Health does not comment on its capital raising activity. Earlier in his career, Ed Park served as chief operating officer of athenahealth, while Todd Park was chief technology officer of the United States during the Obama administration.

AI focus draws attention in Medicare Advantage

The fundraising talks reflect broader investor enthusiasm for healthcare groups that use AI to improve patient care and the economics of medicine. The back-to-back rounds also suggest confidence in Devoted Health's ability to scale in one of the largest and fastest-growing areas of the U.S. healthcare market.

Medicare Advantage, the privately run alternative to traditional Medicare for people aged 65 and older and for people with disabilities, has expanded rapidly over the past decade. Enrollment has more than doubled, drawing competition from major insurers as well as venture-backed startups seeking a share of the hundreds of billions of dollars the federal government spends on the program each year.

Devoted Health generates most of its revenue through government-funded Medicare Advantage premiums, positioning it as both an insurer and a healthcare provider. The company had 466,000 members as of January 2026, up 121% from a year earlier, and its investors include Andreessen Horowitz, General Catalyst, Iconiq, and Emerson Collective, according to PitchBook.

Our earlier roundup of major U.S. startup financings highlighted how venture funding remains concentrated in AI and other capital-intensive segments, with investors backing infrastructure-heavy and regulated, real-world applications. We noted that this trend reflects a preference for AI that can drive measurable efficiency and performance gains beyond consumer software.

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