US insurtech company Yuzu Health has secured $35m in Series A funding, taking its total capital raised to $40m.
The round was led by General Catalyst and Chemistry, with additional backing from Anthropic’s Anthology Fund, Bain Future Back Ventures, Timeless Ventures, Lachy Groom and Neo.
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Yuzu Health said the fresh funding will be used to grow its engineering team and scale the platform nationally.
It also plans to invest in automating processes such as claims adjudication, stop-loss submissions, reconciliation, bookkeeping and downstream reporting.
As part of the deal, General Catalyst managing director Alex Tran will take a seat on Yuzu Health’s board.
Established in 2022, the company originally set out to create a new type of health plan before shifting focus to what it described as a “broader market gap” to update the underlying infrastructure used in health insurance administration.
Yuzu Health now operates as a vertically integrated third-party administrator, offering tools for claims processing, payments and member administration.
It has built a unified, white-labelled system of record intended to replace older administrative systems.
Yuzu Health co-founder Max Kauderer said: “Healthcare costs are rising at their fastest pace in over 15 years, and employers are looking for new ways to design plans that actually control costs.
“But the infrastructure behind health insurance hasn’t meaningfully changed in decades. We built Yuzu to simplify that stack and make it possible for innovative plans to launch quickly, operate efficiently and deliver a better member experience.”
According to the company, the platform allows customers to introduce more configurable plan designs such as direct contracts, cash payments and dynamic copays without depending on traditional service-heavy approaches.
The company said it currently works with health insurers, brokers and employers across all 50 US states, covering thousands of employers.
It has handled more than $1bn in claims payment volume to date.
