These days, it’s rare to hear of a startup founded in 2019, or one not focused on AI agents, raising a hefty Series C. But health insurance startup Angle Health announced Friday that it raised a $200 million Series C, alongside a $400 million tender offer, at a $2.7 billion valuation. The round was led by Vitruvian Partners with participation from Town Hall Ventures, Blumberg Capital, Portage Ventures, PruVen Capital, and Y Combinator. The tender offer allows employees to cash out some of their shares, the company told TechCrunch. It expects the round to close later this month.

Angle Health, a winter 2020 YC alum, helps small businesses obtain and manage what’s known as “level-funded health plans.” These are plans that land between fully insured and self-funded plans. In fully insured plans, the carrier takes all the risks; such plans are more expensive but costs are predictable. With self-funded plans, the company covers the expenses and costs can be unpredictable. With level-funded plans, businesses make predictable payments to carriers, are insured against higher-than-expected costs, and can potentially save money by getting a share of the surplus back if expenses stay low.

Angle says these plans can make health insurance more affordable for small businesses. It’s an AI-powered platform that helps small businesses choose and manage plans, integrating with payroll and HR systems. The startup says it serves over 5,000 businesses and is profitable.