OTONOMI raises $3.4 million
Parametric insurance startup Otonomi has raised $3.4 million in a round led by ATX Ventures, with participation from GSR Ventures, Greenlight Re Innovations, Punja.VC, Altari Ventures, Soundboard Venture Fund, Blackhorn VC, Bering Waters, REFASHIOND Ventures, and a number of angels and syndicates.
Founded in 2020 and based in Brooklyn, OTONOMI’s blockchain-enabled parametric platform “transforms cargo insurance policies into fast, cost-effective, and transparent digital products.” Some of the solutions the startup offers include algorithmic underwriting and faster claim settlement – from 45 days to 45 minutes.
OTONOMI is led by Yann Barbarroux and Jeremy Sutton. Previously, they founded Flyion, a blockchain-powered flight delay insurance company.
“Otonomi is bringing a new product to market by building complex models to be able to profitably underwrite insurance against delays in shipments of freight. Traditionally, insurance at the point of sale has been focused on damages to goods. However, costly delays often arise across air, maritime, trucking, and last-mile logistics. Otonomi has a great team positioned to bring together aspects of parametric insurance, risk related to supply chain and shipment delays, and highly embeddable distribution.” – Chris Shonk, partner and co-founder at ATX Ventures Partners.
“By leveraging smart contracts, advanced risk metrics, and industry-leading oracles from our technology partner Chainlink, our engineers are able to build more transparent, timely, and cost-efficient products for our logistics end-clients and insurance underwriter partners.”- Jeremy Sutton.