Rainbow, a digitally-enabled managing general underwriter offering tailored small business insurance products, has announced $12 million raised in seed funding with participation from Caffeinated Capital, Altai Ventures, Zigg Capital, 8VC, Buckley Ventures, Habitat Partners, and Arch Capital Group Ltd.
The company’s flagship program, an admitted business owner’s policy product tailored to the restaurant industry, is currently live in eight states and expected to be available in more than 25 states in 2024. Rainbow’s restaurant program is exclusively distributed through independent insurance agents and digital partners.
“Coming out of the pandemic, we saw a gap in the process of other underwriting companies and carriers focused on small commercial, and this was super clear with restaurants and their ever-evolving nature,” said Rainbow’s CEO and co-founder Bobby Touran in a company press release. “Restaurants are a massive category where every operator requires insurance, and it has proven to be a challenging class for many capacity providers. We felt that building deep domain expertise in the verticals we focus on would allow us to use technology to tailor our underwriting and prioritize loss ratio, all while maintaining the critically important customer-centric approach to small business.”
Rainbow’s engineering team has developed a proprietary and scalable platform for underwriting and transacting every submitted risk. The company’s approach to utilizing data and technology in its underwriting aims to create differentiated value for both agents and insureds.
Founded in 2022, company’s vision extends beyond the foodservice class, with plans to launch specialized programs in additional business verticals that align with Rainbow’s underwriting approach and vision, the press release said.