Devoted Health is the latest startup to show that combining health and AI commands a premium valuation.
Just months after announcing a new round of funding, the Medicare Advantage startup is in talks to raise another round that could value the company at $25 billion, according to sources familiar with the matter.
That's a jump from the company's $16 billion valuation in a funding round raised earlier this year, according to sources.
Devoted Health, which is based in Waltham, Massachusetts, was founded in 2017 by brothers and former healthcare executives Ed and Todd Park. The startup combines health insurance and medical care for elderly people enrolled in the Medicare Advantage market. The company's proprietary AI tool, Orinoco, helps coordinate medical care for members.
Ed Park was previously the COO of athenahealth, and Todd Park was the chief technology officer of the United States in the Obama administration.
"We do not comment on our capital raising activity," said a company spokesperson.
The fundraising reflects growing investor enthusiasm for healthcare companies that use AI to improve both patient care and the economics of medicine. The back-to-back rounds could also signal investor confidence in Devoted's ability to scale in one of healthcare's largest and fastest-growing markets. Medicare Advantage has become a battleground for both incumbent insurers and venture-backed startups.
Medicare Advantage is the private alternative to the traditional Medicare program that provides health coverage to people 65 and older and people with disabilities. The program has grown rapidly over the past decade, with enrollment more than doubling. That boom has attracted both insurance giants and venture-backed startups eager to tap into the hundreds of billions of dollars the federal government spends on the program annually.
Devoted generates revenue primarily through government-funded Medicare Advantage premiums, making it part insurer and part healthcare provider. The company had 466,000 members as of January 2026, a year-over-year increase of 121%.
Devoted Health's investors include Andreessen Horowitz, Venrock, General Catalyst, Iconiq, and Emerson Collective, according to PitchBook.