Brokerage fintech Embroker has completed a $12.2 million Series A round led by Canaan Partners and with new participation from Nyca Partners and XL Innovate. Prior investors Bee Partners, FinTech Collective, Vertical Venture Partners and 500 Startups also participated, while Silicon Valley Bank provided a new debt facility.
This is the second funding round for the cloud-based risk and insurance management platform which employs its own software, data and predictive analytics to help business by commercial insurance.
“We’re proud to lead Embroker’s Series A,” said Brendan Dickinson, principal at Canaan Partners. “Embroker’s offering is one of the first to disrupt the $300 billion business insurance market, meeting the increasing demand for transparency in commercial insurance options.”
Technology has brought transparency to a traditionally murky industry, Embroker’s founder and CEO said.
“This industry has needed more transparency since its inception — now it’s possible to use technology to achieve that end,” Matt Miller explained. “Getting the right insurance coverage at the right price is key to the health and success of every business but, until now, all but the largest corporations have relied on traditional insurance brokers and outdated, manual processes to make those critical business decisions.
“By bringing clarity and simplicity to what’s traditionally been an opaque and painful process, we’re enabling business owners to embrace insurance and risk management as tools for growth rather than obstacles.”
The average SME has as many as six separate insurance policies and can spend $1 million or premiums every year, Embroker said. Manual processes and complex products combine to produce low renewal rates. Process automation will help improve those numbers by facilitating document uploads and peer review and support.