Federato raises $40 million
Federato, an underwriting platform for insurance, has raised $40 million in Series C funding led by StepStone Group, with participation from existing investors, including Emergence Capital, Caffeinated Capital and Pear VC. To date, the startup raised $80 million.
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.
The funding will be used to drive Federato’s continued global presence in the UK, Europe, LATAM, and APAC markets.
“We have been closely following Federato’s rapid growth over the past five years as an LP in several organizations who have been investors in the company since inception. Founders Will and William’s deep expertise in AI and their dedication to bringing a true vertical AI product to the insurance industry is impressive. Federato’s fast-growing customer base is a testament to the impact they’ve already delivered. We are excited to partner with Federato as they help insurers innovate on business models to better serve challenged markets.” – – John Avirett, Partner at StepStone Group.
“When we started with Federato nearly three years ago, we were impressed by the modern underwriting platform they had built. Since then, Federato has become the core engine that powers our growth businesses here in North America. Today, we are leveraging the RiskOps platform as a unified core system for the entire policy lifecycle, from submission to quote, bind, and issue.” – Mike Foley, Chief Underwriting Officer, QBE North America.
“We couldn’t be more elated that our investors and customers feel the momentum of RiskOps in insurance the way we do. We see this financing as a milestone of continued progress and not an achievement in and of itself. That achievement lies in the value we are creating each and every day for our customers and the communities they serve. Onward!” – Will Ross, co-founder and CEO of Federat.