Rainbow raises $12 million
Rainbow, the managing general underwriter targeting the restaurant industry, has raised $12 million from Caffeinated Capital, Altai Ventures, Zigg Capital, 8VC, Buckley Ventures, Habitat Partners, and Arch Capital Group.
Founded in 2021 and based in California, Rainbow’s flagship program, an admitted business owner’s policy product tailored to the restaurant industry, is currently live in 8 states and expected to be available in over 25 states in 2024. The coverage is distributed through independent insurance agents and digital partners.
“Coming out of the pandemic, we saw a gap in the process of other underwriting companies and carriers focused on small commercial, and this was super clear with restaurants and their ever-evolving nature. Restaurants are a massive category where every operator requires insurance, and it has proven to be a challenging class for many capacity providers. We felt that building deep domain expertise in the verticals we focus on would allow us to use technology to tailor our underwriting and prioritize loss ratio, all while maintaining the critically important customer-centric approach to small business.” – Rainbow’s CEO and co-founder Bobby Touran.
“We are deeply invested in Rainbow and its world-class founding team, which has accomplished so much in such a short time since inception and despite market headwinds. We are extremely encouraged by the early traction of their flagship program, and their exceptional platform capabilities have them poised to scale rapidly.” – Ray Tonsing, managing partner of Caffeinated Capital.