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Based in Columbus, Ohio, Circulo Health is an insurtech company developing a technology platform for Medicaid managed care to deliver health benefits through partnerships with state agencies. Operating within the managed care sector, the organization aims to streamline care delivery and the member experience for high-needs patient populations across the United States, targeting a market of over 75 million Medicaid beneficiaries. To support its initial development and hiring efforts, the enterprise secured $50 million in Series A equity financing in February 2021. This funding round was led by prominent venture capital firms Drive Capital and General Catalyst, with additional participation from Oak HC/FT and SVB Capital. The business model leverages internet-scale technology originally discussed with investors from Olive, another healthcare technology firm led by the same executive team. Circulo Health was founded in 2020 by Sean Lane.
Circulo Health has raised $50.0M across 1 funding round.
Circulo Health has raised $50.0M in total across 1 funding round.
Circulo Health has raised $50.0M across 1 funding round. Most recently, it raised $50.0M Series A in February 2021.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Feb 1, 2021 | $50M Series A | — | Black Tech Nation Ventures, Drive Capital, General Catalyst, OAK HC/FT, SVB Capital | Announced |
Circulo Health has raised $50.0M in total across 1 funding round.
Circulo Health's investors include Black Tech Nation Ventures, Drive Capital, General Catalyst, Oak HC/FT, SVB Capital.
Circulo Health is a Columbus, Ohio-based insurtech company founded in 2021 as a spin-out from Olive AI, initially raising $50M in Series A funding from investors including Drive Capital, General Catalyst, Oak HC/FT, and SVB Capital to disrupt Medicaid managed care using AI, automation, and Olive's platform adopted by over 600 hospitals.[1][2][3][4] Targeting Medicaid's 75 million members—1 in 5 Americans, nearly half of U.S. births, and ~2.5% of GDP—the company aimed to transform insurance into "health assurance" via lightning-fast automation, data-driven insights, and tech-enabled care for underserved populations, saving providers time while prioritizing human needs.[1][2][5][6] It briefly expanded into primary care via acquiring Huddle Health and partnered with telehealth firms like Brave Health, but by August 2023, shut down its insurtech and primary care lines amid leadership changes and pivots, refocusing solely on home- and community-based programs for individuals with intellectual and developmental disabilities (IDD).[3][4]
Circulo emerged in February 2021 from Olive AI, an automation platform for healthcare, with $50M initial funding to build a next-generation Medicaid managed care organization (MCO) from scratch in Columbus, Ohio—dubbed the emerging insurtech capital.[1][3] Led initially by CEO Sean Lane (also Olive's CEO) and later Jeff Grahling, the idea stemmed from Medicaid's neglect by venture-backed startups favoring Medicare Advantage and commercial markets, aiming to serve the underserved with internet-scale tech.[1][3] Early traction included the funding round backed by Drive Capital's Chris Olsen and General Catalyst, plus acquisitions like Huddle Health for primary care and partnerships for tele-psychiatry; however, the MCO vision never launched, leading to multiple reinventions and a 2023 shutdown of insurtech operations.[1][3][4]
Circulo rode the insurtech wave targeting Medicaid—a $1T+ market often overlooked amid Medicare and commercial disruptions—aligning with AI-driven healthcare automation trends post-2020, where Olive's platform enabled scalable innovation for state budgets' top line item.[1][2][3] Timing capitalized on rising VC interest in underserved care (e.g., via General Catalyst's portfolio like Oscar and Livongo), but market forces like regulatory hurdles for new MCOs and Olive AI's 2023 bankruptcy contributed to its insurtech pivot failure.[1][3] It influenced Ohio's insurtech ecosystem by highlighting Columbus as a hub, though its shift to IDD services underscores broader challenges in scaling Medicaid tech amid execution risks.[1][3][4]
Circulo's bold 2021 launch exposed Medicaid insurtech's high ambitions and pitfalls, now streamlined to IDD home services after shuttering tech insurance ambitions and key partnerships.[3] Ahead, expect niche growth in IDD amid rising demand for community-based care, shaped by AI efficiencies and state Medicaid expansions, potentially regaining traction if leadership stabilizes—echoing its origin as a mission-driven disruptor now grounded in specialized execution.[3][1]
