H1 secures $40M from CVS, proving SaaS startups can still attract investment

Healthcare data platform H1 has raised a $40M round led by CVS Health Ventures despite the broader investor skepticism toward pre-AI SaaS companies. CEO Ariel Katz argues that data-centric businesses are fundamentally different from workflow SaaS, which AI can replicate. H1, now cash flow and EBITDA profitable and forecasting 40%+ growth, wasn't actively seeking capital but accepted the strategic partnership. The company was last valued at $750M in 2021 and has since focused on profitability and acquisitions rather than chasing traditional VC funding.