Rainbow raises $8 million

Rainbow, an MGU offering business insurance, has raised $8 million in a Series A round led by Zigg Capital, bringing its funding to date to $20 million. The financing, which closed in Q4 2024, will accelerate the company’s plans to expand its “specialized underwriting approach” to additional business verticals, with Rainbow’s second program recently launching in select states, followed by a nationwide roll out.

Founded in 2021, Rainbow initially focused on offering coverage for restaurants through a program that is currently live in 24 states. The company has launched its second vertical, offering coverage to beauty and wellness businesses in Arizona and Michigan.

“As we continue to prove our thesis for scalable, software-driven-underwriting across a growing portfolio of specialized insurance programs, we’re thrilled to be deepening our partnership with Zigg, a firm that shares our vision for a differentiated approach to profitable insurance underwriting with endless potential. This new capital will allow us to accelerate our expansion into additional verticals in service of growing demand from our agent and distribution partners, all while continuing to innovate our proprietary technology and attracting the best talent to our team.” – Bobby Touran, CEO and Co-founder of Rainbow.

“As our firm refined its broad insurtech thesis, we identified that Rainbow has built the most compelling technology platform to serve the restaurant vertical, as well as the SME sector. Moreover, the team Bobby, Shalom, and Jamie have assembled at Rainbow exemplifies the profile Zigg seeks to back – efficient, fast moving, domain expert, and customer centric. Rainbow’s custom-built software to serve its various constituencies is powerful and the company’s growth is among the fastest we have observed for a B2B offering.” – Ryan Orley, General Partner of Zigg Capital.