Arlo Announces $4M Seed Funding to Help Small Businesses Offer Affordable Health Insurance
NEW YORK, March 25, 2025 – Arlo, an AI-driven health insurance underwriter, has secured $4 million in seed funding. The company plans to use the investment to provide small and mid-sized businesses with affordable, value-based health insurance options.
The seed funding round was led by Upfront Ventures, with participation from 8VC and General Catalyst. Arlo’s mission is to reshape the self-funded health insurance landscape through AI-driven underwriting and a focus on value-based care. Within its first year, the company has already written mid-eight figures in premiums and partnered with industry-leading reinsurers like Nationwide.
Arlo’s logo.
Health insurance costs have been steadily rising, with premiums jumping 6% in 2024 alone. Over the past decade, costs have climbed a staggering 49%, significantly outpacing general inflation. Small businesses, which employ a large portion of the American workforce, often struggle to provide affordable health benefits. Many are forced to choose between absorbing unsustainable costs or shifting the burden to their employees.
Employees often face issues such as delayed care, denied claims, and frustration with the complexities of the insurance system. While larger companies can negotiate better rates, smaller businesses typically have limited options. Arlo seeks to address this by offering affordable self-funded insurance built on value-based care and cost transparency.
Arlo’s AI-enabled underwriting technology allows it to create a model that promotes preventative care, aligns incentives for all parties involved (employers, employees, and providers), and identifies health risks early. Jan-Felix Schneider, Co-Founder and CEO of Arlo, stated, “The challenge in healthcare isn’t just rising costs—it’s misaligned incentives.” Schneider added that “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.”
Kevin Zhang, Partner at Upfront Ventures, expressed his enthusiasm for Arlo, stating, “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.”
Arlo’s rapid growth has been driven by strong partnerships with leading benefits firms. The team includes experts from Palantir, Finch, Gusto, and WTW. Sebastian Caliri, Partner at 8VC, commented, “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.”
With this funding, Arlo aims to accelerate its mission of bringing affordable, high-quality, and long-term oriented benefits to small businesses nationwide. The company is actively hiring for engineering and sales roles while expanding its broker network.
To learn more about Arlo’s approach to health insurance or explore career opportunities, visit www.joinarlo.com.
About Arlo
Arlo offers value-based, level-funded health plans for small and medium-sized businesses. Founded by Jan-Felix Schneider, former Palantir team lead, and Karthik Bhaskara, who previously led engineering at Finch. Arlo offers competitive benefits packages to companies with 10+ employees by combining new underwriting technologies and a value-based care approach.
For more information, please reach out to [email protected].
