Devoted Health eyes $25 billion valuation in new funding round
Medicare Advantage startup Devoted Health is reportedly negotiating a fresh financing round that could lift its valuation to $25 billion, up from $16 billion earlier this year.
Devoted Health, a Medicare Advantage provider founded by former healthcare executives Ed Park and Todd Park, is reportedly seeking a new financing round that could push its valuation to $25 billion, a jump from the $16 billion valuation recorded earlier this year. The Waltham, Massachusetts firm combines insurance and direct medical care for elderly members, leveraging its proprietary AI system, Orinoco, to coordinate services.
As of January 2026, the company served 466,000 members, reflecting a 121 % increase over the previous year. Existing backers include Andreessen Horowitz, Venrock, General Catalyst, Iconiq and Emerson Collective. The surge in valuation underscores investor enthusiasm for AI-driven health-care models in the rapidly expanding Medicare Advantage market.
The company declined to comment on its current capital-raising activities. The growth highlights the competitive landscape where both traditional insurers and venture-backed startups vie for a share of federal Medicare spending.
Why it matters
The deal shows strong investor confidence in AI-powered health-care models targeting the fast-growing Medicare Advantage market.
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