Key US InsurTech investment stats in 2025:
- US InsurTech funding fell by 18% YoY in 2025
- New York, California, Texas and Illinois were tied as the most active states in the US InsurTech market, being home to two top deals each for the year
- Angle Health, an InsurTech platform focused on modernising employer health coverage through AI-driven underwriting, risk management and insurance operations, secured the top US InsurTech deal of the year with a $134m Series B funding round
US InsurTech funding fell by 18% YoY in 2025
In 2025 the US InsurTech sector recorded 114 transactions, representing an increase of 16% from the 98 deals completed in 2024.
Despite this rise in deal activity, total investment declined to $2.3bn in 2025 from $2.8bn in 2024, marking a decrease of 18%.
The divergence between rising deal volume and falling funding indicates a shift towards smaller average deal sizes, suggesting investors remained active in the space but were more selective in cheque sizes.
This dynamic reflects a more cautious capital deployment environment, even as transaction momentum improved across the US InsurTech landscape.
New York, California, Texas and Illinois were tied as the most active states in the US InsurTech market, being home to two top deals each for the year
The composition of the top 10 deals shifted moderately across the two years while retaining several core states.
California remained a key hub, although its share reduced from three top deals in 2024 to two in 2025.
Illinois strengthened slightly in relative positioning, maintaining two top deals in both years, while New York increased from one top deal in 2024 to two in 2025, reinforcing its growing prominence in large InsurTech transactions.
Massachusetts also maintained representation with one top deal in both periods.
New entrants in 2025 included Texas and New Jersey, each securing top deals, indicating some geographic expansion of large transactions.
In contrast, Tennessee, Minnesota and Maryland, which collectively accounted for three top deals in 2024, did not feature in 2025.
Overall, the shift suggests consolidation of large deal activity around major insurance and financial hubs, alongside selective emergence of new state-level contributors.
Angle Health, an InsurTech platform focused on modernising employer health coverage through AI-driven underwriting, risk management and insurance operations, secured the top US InsurTech deal of the year with a $134m Series B funding round
The round was led by Portage with participation from Blumberg Capital, Mighty Capital, PruVen Capital, SixThirty Ventures, TSVC, Wing VC and Y Combinator, bringing total funding to approximately $200m.
The San Francisco-headquartered company is building next-generation digital insurance infrastructure that replaces legacy carrier technology with real-time data, automated decisioning and AI-enabled risk assessment, enabling insurers and employers to better price, manage and administer health insurance products.
Angle Health currently serves more than 3,000 employers across 44 states and is expanding its platform capabilities across insurance operations, claims workflows and cost optimisation as healthcare insurers increasingly shift towards technology-first operating models.
The new capital will support platform scaling, deeper AI integration and expansion of its insurance product stack, positioning Angle Health to capture growing demand for modern, software-led insurance platforms as medical cost inflation and regulatory complexity drive digital transformation across the US health insurance market.
Keep up with all the latest InsurTech news here
Copyright © 2026 InsurTech Analyst
