Apr 11, 2019
Huge congrats to FTC I portfolio company Embroker on their $28m Series-B raise from smart money, Seattle-based investor, Tola Capital.
The round includes participation from Canaan Partners, Bee Partners, Manulife Capital Ventures, Nyca Partners, and XL Innovate.
Software veteran Bill Veghte (Microsoft, Hewlett-Packard, Survey Monkey) has joined the board.
Truly understanding a customer pain point and re-engineering a product in a whole new way is what makes this type of innovation powerful.
Matt Miller, CEO - Embroker
Embroker offers commercial insurance coverage which can be underwritten in less than 10 minutes while also generating 20% savings over competitive products, in an $800b industry that Veghte aptly describes as having been largely static for the last 30 years.
Embroker acts as a digital managing general agent (MGA), matching organizations of 10-1000 employees with D&O and EPL coverage from over 50 carriers while laying off 100% the risk to global reinsurer MunichRe.
The digital-first experience is bundled with an agile tech backend which includes “data-driven” guidance provided by a team of insurance advisors, real-time claims tracking and instant certificates of insurance. Companies can track and manage assets and vendor certificates online and customize requirements by project, and receive notifications for noncompliant and expired policies while adding variables like property location information.
KYLE WIGGERS, VENTUREBEAT
The capital infusion will drive the expansion of Embroker’s platform well into the coming months, said CEO and founder Matt Miller, and it comes after a blockbuster year during which the company provided more than $1 billion in liability coverage to technology companies. (Embroker estimates that it currently works with more than 5% of all active VC-backed tech companies in the U.S., a share it’s projecting will double by year-end.) In 2018, it tripled revenue across its customer base of over 2,500 companies, moreover, and says it’s on track to more than double revenue in 2019.
Embroker doesn’t retain any risk itself, but instead matches organizations of between 10 to 1,000 employees with policies from over 50 commercial carriers including Travelers and The Hartford. Some policies — like the directors & officers (D&O) and employment practices and liability (EPL) insurance in its recently launched Embroker Startup Program — are custom-built for verticals like technology, and come with “data-driven” guidance provided by a team of insurance advisors, plus real-time claims tracking and instant certificates of insurance. Companies can track and manage assets and vendor certificates online and customize requirements by project, and receive notifications for noncompliant and expired policies or add variables like property location information. link
ERICKA CHICKOWSKI, DIGIRUPT
Today’s venture capital news offers a workaday example. The digital insurance company Embroker landed $28 million in funding to support its foray into the automation and digitization of underwriting. That’s just one example, and a modest sampling of capital being invested in the insurance technology market. According to FinTechGlobal, the amount invested in the market almost doubled last year to $3.17 billion. Those investments are being made in hopes of reaping considerable rewards—analysis from Juniper Research shows insurance premiums generated by insurance tech could reach $406 billion by 2023.
That’s just the start of insurance industry disruption. Larger societal and economic trends like the rise in the gig and sharing economies are changing the dynamics of who buys insurance and why Deloitte explained. For example, remote workers and self-employed are using personal property for commercial purposes, and the boundaries between lines of business, coverages, and industries are continually being blurred. link
Oliver Wyman, Interview with Matt Miller link