Fairmatic raises $46 million
Commercial auto insurance startup Fairmatic has raised $46 million in new funding led by Battery Ventures, with participation from current investors and Bridge Bank. Last August, Fairmatic closed a $42 million Series A round.
Fairmatic, which is led by Jonathan Matus, the co-founder and now former CEO of Zendrive, is “creating a new commercial auto insurance category” with its AI-driven underwriting approach that unlocks continuous savings opportunities for fleets. The startup offers fleets a telematics app that measures how their drivers drive.
“Fairmatic addresses the central requirement of improving commercial auto insurance: motivating safer driving. The company does so by capturing the rich data signal generated by our smartphones and applying it to the task of identifying unsafe driving behavior, which enables Fairmatic to offer insurance products that both reward fleet managers for safer driving and potentially achieve greater profitability than traditional, loss-based approaches to underwriting and pricing. We are excited to partner with Fairmatic as an exemplar of fundamental innovation in financial services. Fulfillment of the company’s mission will entail more than just convenience and lower insurance costs for their customers; it will enhance the safety of the roads we all rely upon every day.” – Battery Ventures partner Marcus Ryu, the former CEO and co-founder of insurtech company Guidewire Software.
“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. 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 towards meaningfully improved road safety and profitability.” – Jonathan Matus, Fairmatic founder and CEO.