Artificial intelligence startup Cytora has raised $5.9 million in new financing from investors including divisions of QBE’s venture arm and Starr Companies.
QBE Ventures, Starr Global Holding, Cambridge Innovation Capital, Cambridge Enterprise and Parkwalk Advisors all participated in the round. Among angel investors who committed funding: Finnish software developer Ilkka Paananen, CEO of gaming studio Supercell, and Paul Foster, a co-founder of Indeed.com, an employment-related search engine.
Plans call for using the money to fuel further expansion and growth in the use of Cytora’s technology, which is designed to help commercial insurers more accurately target, select and price risk. Funding comes as the London, U.K.-based company readies the launch of its Risk Engine, which uses artificial intelligence to spot patterns of good and bad risks over time. The goal: to help insurers achieve better loss ratios and premium growth and boost their ability to give customers more accurate and fair prices.
Cytora said it has been working “selectively” over the last year with a consortium of commercial insurers to imbed its technology before it was launched onto the wider market. QBE, XL Catlin and Starr are among them.