LightSpun Raises $13M Series A to Automate Dental Insurance with AI and Speed Claims

LightSpun Raises $13M Series A To Cut Dental Insurance Admin Waste With AI

LightSpun closed a $13 million Series A led by Brewer Lane with participation from Virtue, Cambrian, and Industry Ventures, bringing total funding to $18 million. The focus: remove manual work from dental insurance operations and speed up decisions end to end.

Why this matters: dental claims often take 15-60 days, and roughly 20% of premium dollars disappear into administrative overhead. Paper and fax are still common, which slows payments, increases rework, and frustrates providers and patients.

What LightSpun Delivers

LightSpun offers an AI-driven administration platform for dental insurers and providers. It automates claim adjudication, benefits management, and provider onboarding with minimal human intervention.

Reported outcomes from customers include cutting administrative expenses by half, auto-adjudicating more than 90% of routine claims, and reducing provider onboarding from up to 60 days to under one week. That's meaningful relief for operating ratios and cash flow.

Commercial Traction

Since rebranding from 32Health, LightSpun has doubled annual recurring revenue and expanded across payers and dental service organizations. The platform manages credentialing for over 175,000 dental providers.

A collaboration with the American Dental Association introduced AI-driven credentialing tools to streamline onboarding nationwide.

How The New Capital Will Be Used

The round will accelerate AI development, expand engineering and product teams, and simplify customer onboarding. LightSpun also plans to build additional partnerships with insurers and service organizations to extend efficiency gains across the ecosystem by the end of 2026.

Board and Governance

As part of the financing, Rohan Malhotra (Brewer Lane) and Sean Doolan (Virtue) joined LightSpun's board. The move signals investor conviction in the company's approach to automating dental administration.

Why Insurance Leaders Should Care

• Expense ratio: Automating routine claim decisions and onboarding can reduce admin costs where they eat a fifth of premiums.
• Cycle time: Moving from weeks to days-or minutes-improves provider satisfaction and lowers call volume and rework.
• STP rate: Auto-adjudication reduces touches per claim and boosts first-pass yield.
• Network growth: Faster onboarding attracts providers and supports member access and retention.

Operational Questions To Ask Your Team (and Vendors)

• What is our current auto-adjudication rate by claim type and CDT category? What's the target lift?
• How are explainability, audit trails, and denial/appeal workflows handled?
• What's the impact on first-pass payment accuracy and resubmission rates?
• How do we integrate with existing systems and standards (e.g., clearinghouses, EDI flows) without disrupting production?
• What controls exist for privacy, security, and compliance (PHI handling, access controls, SOC 2/HITRUST)?
• Which processes remain human-in-the-loop, and what are the SLAs for exception handling?

Key Quotes

"Dental insurance runs on infrastructure that most businesses abandoned decades ago. That's why it's ripe for automation, and why AI can meaningfully reshape industry economics and the experience for providers and patients. LightSpun stands out not just for its AI platform, but for real traction solving administrative headaches for payers, group practices, DSOs, and the millions who just want faster, transparent, better care." - Rohan Malhotra, lead investor and General Partner at Brewer Lane

"Outdated technology holds everyone back, from payers to dentists and patients. Every manual step means weeks of delays and wasted cost. Our vision is better patient outcomes at a lower cost, powered by an AI-native health administration platform. We're grateful for our investors' support as we tackle the most invisible-and expensive-problem in healthcare." - Shaju Puthussery, LightSpun CEO & co-founder

What To Watch Through 2026

Expect deeper automation across claims, benefits, and provider data, along with simplified onboarding for new customers. If you're evaluating AI ops in dental lines, this is a practical window to pilot, baseline metrics, and set clear targets for cycle time, STP, and admin expense reduction.

Further Learning

If you're upskilling teams on AI-driven operations, explore role-based training options at Complete AI Training.