San Francisco, CA – June 27, 2023 – Federato.ai, a provider of a RiskOps underwriting platform, today announced that it has raised $25M in Series B funding. The round was led by Caffeinated Capital, with participation from Emergence Capital and Pear VC.
The company intends to use the funds to accelerate its growth and development efforts to bring efficient underwriting and data-driven portfolio management to P&C and specialty insurance.
“Since leading their Seed round two years ago, we have been privileged to see the Federato team build something exceptional in P&C insurance,” said Varun Gupta, Partner at Caffeinated Capital, who joins the company’s board. “Federato’s software is so valuable that billion-dollar global insurance companies and startup MGAs alike buy, use, and evangelize it. After hearing rave reviews from those customers, seeing the company’s strong growth, and observing the team’s march towards building the Industry Cloud for P&C, we are excited to triple down.”
Federato provides a RiskOps platform that offers a real-time platform for both individual risk underwriting and portfolio optimization. The underlying federated data graph enables a view of client information and allows AI to proactively recommend the next best actions to users. The platform is being used today by a broad cross-section of the insurance industry from multi-billion-dollar insurance carriers to high-growth MGAs.
Insurance Industry Trend
The insurance industry is undergoing a major transformation as it adopts new technologies, such as AI, to improve underwriting and risk management. Federato is well-positioned to capitalize on this trend, as its platform is designed to help insurance companies automate and streamline their underwriting processes.
In recent months, several other startups have raised funding to develop AI-powered underwriting platforms.
Artificial Intelligence-Powered Insurance Technology Companies
- Insurify, which raised $150M in Series D funding in March 2023.
- Lemonade, which raised $300M in Series E funding in February 2023.
- Root, which raised $300M in Series D funding in January 2023.
These startups are all focused on using AI to improve the underwriting process for different types of insurance products. Federato is differentiated from these companies by its focus on providing a comprehensive RiskOps platform that can be used for both individual risk underwriting and portfolio optimization.
Deal Table for Federato
| Key People | Investors | Amount Invested | Sector | Funding Round |
|---|---|---|---|---|
| Will Ross, CEO | Caffeinated Capital, Emergence Capital, Pear VC | $25M | Insurance | Series B |
What is a RiskOps Underwriting Platform in the insurance industry?
A RiskOps underwriting platform is a software solution that uses artificial intelligence (AI) to automate and improve the underwriting process in the insurance industry. The platform can be used to assess risk, price policies, and manage portfolios. It can also be used to identify and mitigate risks and to improve compliance.
The RiskOps underwriting platform has three main advantages
- Increased efficiency
- Improved accuracy
- Reduced risk
- Improved compliance
Update: The article was subsequently updated to correct a few factual errors on the article.
