Federato raises $100 million

Federato, an underwriting platform for insurance, has raised $100 million in Series D funding led by Growth Equity at Goldman Sachs Alternatives, with participation from returning investors Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC. The startup has raised $180 million to date.

Founded in 2020, Federato claims to have already helped thousands of underwriters focus on the highest-value business across global carriers, MGAs, and mutuals. Some of its solutions include taking submissions from the underwriter’s inbox and prioritizing them for underwriter review based on appetite. Using AI, the solution rates and sorts each account by how well it fits the appetite, and the likelihood of winning it.

“Our diligence in P&C insurance revealed that Federato’s AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems. Federato has built the full policy lifecycle solution the market has been waiting for, and we’re excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers.” – Jade Mandel, Managing Director at Growth Equity at Goldman Sachs Alternatives.

“Executives use AI every day and have an intuitive understanding of what it should deliver. But they aren’t getting that from AI bolted on to legacy solutions. The rising demand for true AI-native capability has surprised even us, and this substantial new investment from Goldman Sachs will help us deliver what customers need.” – Will Ross, Co-Founder and CEO of Federato.