Arlo Raises $4 Million to Disrupt Health Insurance for Small Businesses
NEW YORK, March 25, 2025 – Arlo, an AI-driven health insurance underwriter focused on small businesses, has secured $4 million in seed funding. The round was led by Upfront Ventures, with participation from 8VC and General Catalyst.
Within its first operational year, Arlo has already underwritten a significant volume of premiums, reaching mid-eight figures. The company has established partnerships with leading reinsurers, including Nationwide, to deliver innovative health plans that focus on long-term health outcomes rather than short-term claim denials.
Health insurance costs have been on a steep upward trajectory. In 2024 alone, premiums jumped 6%, extending a decade-long trend that has seen costs increase by 49%. These rising costs disproportionately impact small businesses, which employ nearly half of America’s private workforce. Many small businesses are forced to either absorb unsustainable expenses or shift these costs to their employees through higher deductibles.
The implications for employees can be severe, including delayed medical care, unexpected claim denials, and frustration with a system that often seems designed to restrict access to care.
While larger companies often negotiate better rates and customize health plans, small businesses have limited options from traditional insurers.
Arlo offers affordable, self-funded health insurance coverage for small and mid-sized businesses. The company’s approach is built on value-based care and cost transparency. Its AI-enabled underwriting technology allows for a new model that:
- Rewards preventative care
- Aligns incentives between employers, employees, and providers
- Identifies health risks earlier, for better outcomes
“The challenge in healthcare isn’t just rising costs—it’s misaligned incentives,” stated 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.”
Kevin Zhang, Partner at Upfront Ventures, commented, “Upfront is thrilled to support Arlo as they tackle one of the most pressing challenges in healthcare. 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 is supported by key partnerships with leading benefits firms and a team with experience from companies like Palantir, Finch, Gusto, and WTW. Sebastian Caliri, Partner at 8VC, noted, “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 latest funding, Arlo will accelerate its mission to provide affordable, high-quality, and long-term oriented benefits to small businesses nationally. The company is actively hiring for engineering and sales roles while expanding its broker network.
To learn more about Arlo’s approach or explore career openings, visit www.joinarlo.com.
About Arlo
Arlo provides value-based, level-funded health plans for small and medium-sized businesses. Founded by Jan-Felix Schneider and Karthik Bhaskara, Arlo combines new underwriting technologies and value-based care principles to offer competitive benefits packages to companies with 10+ employees.
For inquiries, contact [email protected].
