Embroker has raised $28 million in new venture financing designed to help the digital insurance company and brokerage startup expand.
Plans call for using the Series B funding round, in part, to boost adoption of its digital insurance platform, which sells commercial lines to businesses of all sizes. The company will also seek to expand the customer base for its digital insurance products and data-driven insurance advisers.
Tola Capital led the round, with participation from existing investors Canaan Partners, Bee Partners, Manulife Capital Ventures, Nyca Partners and XL Innovate. XL Innovate was established as the investment arm of XL Catlin, which is now part of AXA under the name of AXA XL.
Including the new round, Embroker has raised $42 million to date since its 2016 launch.
Embroker describes its model as providing businesses with the exact coverage they need, but cheaper and with less hassle due to digitization of “antiquated processes.” Embroker said it also offers custom-built insurance policies that are underwritten instantly.
Embroker describes its “all-in-one platform” as streamlining insurance management, an advance that gives businesses a unified view of their policies companywide, real-time claims tracking and instant certificates of insurance. Customers can buy or renew any type of policy from more than 50 commercial carriers and receive data-driven guidance from Embroker’s team of insurance advisers who specialize in specific industries.
Embroker’s target market: businesses with 10 to 1,000 employees. The company claims to have grown rapidly since its 2016 launch and said it now has more than 2,500 customers. It did not disclose specific revenue statistics.
Embroker launched the Embroker Startup Program in 2018, a group of proprietary insurance policies custom-built for technology companies. Businesses can purchase directors & officers (D&O) and employment practices liability (EPL) insurance instantly. The company asserts that by automating underwriting and digitizing the buying process, it can provide better and more specific coverage and save 20 percent on average for its customers.
The startup asserts that it has built a sizable business with technology companies, providing more than $1 billion in liability coverage for them thus far. Embroker also claims it works with more than 5 percent of all active VC-backed technology companies in the U.S. and will exceed 10 percent by the end of 2019. Embroker’s policies are custom built for venture capital-backed tech companies and Munich Re fully backs them, the company said.
Embroker is currently developing proprietary digital policies for a range of other industries, it said.
Separately, the company also appointed Bill Veghte to its board. Veghte is a veteran executive from companies including Microsoft and Hewlett-Packard and was CEO of Survey Monkey, among other accomplishments.