Pie Insurance disclosed that it has raised $11 million in new financing, with plans to use the money to scale up its workers compensation MGA operations and propel an ongoing market expansion.
Greycroft led the Series A round, with participation from Aspect Ventures, plus previous investors Moxley Holdings, Elefund and the global insurer Sirius Group. Pie operates in eight states right now (Colorado, Louisiana, Texas, Illinois, Georgia, Tennessee, Arizona and soon California) but the target is to scale nationally.
Pie Insurance debuted in 2017 with a goal to “disrupt” the workers compensation market. It operates as a full-stack managing general agency but also offers small businesses its Pie Price Predictor Tool, which tells users what they should pay for coverage compared to the market average. Customers can use the tool for free, and Valen Analytics technology helps the tool function. The InsurTech said it will write firms with premium up to $25,000, but its main customer target early on has been businesses with premiums $5,000 and under, Pie CEO and co-founder John Swigart has said.
Swigart, in a mass email to “Pie Watcher” discussing the Series A financing and other milestones, wrote that “encouraging early results and focused execution by our team put us in a great position for an efficient fundraising process.”
Swigart’s email also noted that over the last four months Pie has had an annualized premium run rate of $3.5 million and that sales are now hitting markets reflecting 20 percent of the country.
Source: Pie Insurance