InsurTech startup Embroker lands $100M investment to disrupt the $800 billion property and casualty (P&C) insurance market
A little over a year ago, Embroker shared with us an informative article titled, “Startup Guide to Raising Venture Capital: Series A, B, and C Funding Explained.” It is a great read for those who may not be familiar with the basics of startup funding and terms like Series A, Series B funding, etc. So, it’s fitting to share with you funding news from the same company.
Embroker is San Francisco, California-based digital insurance brokerage startup disrupting the $800 billion property and casualty (P&C) insurance market. The startup uses predictive modeling powered by proprietary technology to fully automate underwriting and make the buying process simple, fast, and more affordable.
Today, Embroker announced it has closed $100 million in Series C funding to expand the company into a full-stack insurtech by building its own insurance carrier. The funding round was led by FTV Capital with additional investment from HSCM Bermuda and Gaingels and follow-on from Tola Capital, Canaan Partners, Bee Partners, and MassMutual Ventures. Since its inception, Embroker has raised more than $140M in funding from leading Fintech and Insurtech investors.
Founded in 2015 by Matt Miller, Sean X Cummings, and Yotam Shacham, Embroker is transforming commercial insurance by making it radically simple for businesses to get the right insurance at the best price. Embroker focuses on industry-specific coverage for the most complex and inefficient lines of insurance, such as Directors and Officers, Employment Practices Liability, Cyber, and Professional Liability.
“For Embroker to truly forge a new approach to business insurance, we need to reimagine and rebuild every part of the process,” said Matt Miller, Embroker CEO. “Even as some of the surface-level elements of insurance have become increasingly customized and digitized, the underlying legacy systems and antiquated processes endemic to this industry are needlessly complex and require a substantial overhaul. This investment round will help us make business insurance a more streamlined and radically simple experience by accelerating our progress in building many of these systems from the ground up.”
Embroker applies modern data-driven underwriting models to assess risk better, and create policies and premiums that protect companies against that risk. This unique algorithmic-based risk management reduces premiums for businesses by up to 20 percent. The Embroker experience is both digital when customers need the ease of technology and personal when they want the guidance of experts. All of Embroker’s digital insurance products are instantly underwritten by Embroker’s insurance platform and are fully backed by A+ rated reinsurers including Munich Re and Everest Re.
Mike Vostrizansky, FTV Capital principal and Embroker board member, said: “Led by a management team with deep domain expertise, Embroker has thoughtfully taken a digital-first approach to broadening its suite of proprietary specialty line offerings and enhancing its technology infrastructure. This strategy has resulted in an accelerating growth trajectory as the company is successfully delivering on the unique needs of the vertical business segments.”
“Unlike mono-line insurers that grow by volume only, Embroker has strategically built a business able to benefit from multiple levers for premium growth. They are effectively tailoring offerings to new, underserved end markets, adding new insurance lines to unlock broader coverage, and growing customers through policy expansion,” said Chris Winship, FTV Capital partner and Embroker board observer. “We look forward to collaborating with the team in this next phase of their growth journey.”