Daffodil Health, a San Francisco, CA–based AI-powered platform modernizing U.S. health plan administration and claims processing, has raised $16.3 million in Series A funding.
Investors
The round was led by Flare Capital Partners, with participation from LRVHealth, Maverick Ventures, and individual investors including, Scott Mingee and Jim Lacy, bringing Daffodil's total raised to $20.9 million.
Flare Capital Partners is a healthcare technology venture capital firm advancing innovation-driven companies to improve health outcomes, broaden care access, and lower healthcare costs. Flare partners with exceptional founders solving healthcare’s toughest challenges, supporting each with deep sector expertise, unparalleled industry resources, and proven access to commercial opportunities. With nearly $1 billion in assets under management, Flare has invested in over 70 companies.
Daffodil Health Use of Funds
The funding will be used to accelerate product development, expand deployments with health plans and third-party administrators (TPAs), and further enhance real-time pricing, transparency, and payment integrity capabilities.
About Daffodil Health
Daffodil Health is an AI-first healthcare technology company modernizing claims and pricing infrastructure for U.S. health plans. Its configurable, transparent platform enables payors and TPAs to manage out-of-network (OON) repricing and payment integrity in-house without added operational complexity or labor costs. Headquartered in San Francisco, California, Daffodil Health’s mission is to help health plans lower costs, improve auditability, and enable more sustainable, member-centric benefit designs.
Funding Details
Company: Daffodil Health, Inc.
Raised: $16.3M
Round: Series A
Funding Date: February 2026
Lead Investor: Flare Capital Partners
Additional Investors: LRVHealth, Maverick Ventures, Scott Mingee, Jim Lacy
Company Website: https://daffodilhealth.com/
Software Category: Healthcare / AI Claims & Pricing Automation
Source: https://www.businesswire.com/news/home/20260217231553/en/