Commercial Auto InsurTech Fairmatic Raises $46M in New Funding

March 24, 2023

Artificial intelligence-powered commercial auto insurance company Fairmatic announced that it has raised $46 million in new funding six months after its oversubscribed series A. This brings its total financing to $88 million. Battery Ventures led the round with participation from current investors and Bridge Bank.

Fairmatic aims to create a new commercial auto insurance category with its AI-driven underwriting approach and unlock continuous savings opportunities for fleets, according to a company press release. By providing a way to monitor driving events and offering improvement tips, Fairmatic works to give fleets more proactive control over their risk management approach, the release said.

The company works to motivate safer driving by capturing the data signal generated by smartphones and using it to identify unsafe driving behavior, enabling it to offer insurance products that reward fleet managers for safer driving.

“New developments in AI, combined with troves of proprietary driving insights, have allowed Fairmatic to unlock a completely new approach to addressing the most critical questions in commercial auto insurance: which drivers are safe and which aren’t; how insurers can help drivers improve safety and reduce risk,” said Jonathan Matus, Fairmatic founder and CEO, in a company press release. “With this powerful new technology for improving driver behavior, there’s a massive opportunity to reframe the problem and solution from first principles. This new funding strengthens Fairmatic’s lead in AI innovation geared toward meaningfully improved road safety and profitability.”

Following its Series B, Fairmatic is scaling its AI and data-science capabilities by opening a new research and development hub in Israel and tapping seasoned technologist and former NASA researcher Guy Shaviv as the new head of engineering in Israel.

Founded by Jonathan Matus, a technologist who helped launch Android and Facebook mobile, Fairmatic has raised a total of $88 million from Battery Ventures, Foundation Capital, Aquiline Technology Growth and InsurTech, fintech and technology investors, including Jerry Yang, Oren Zeev and Bill Tai.

Source: Fairmatic