Shepherd raises $6.2 million
Shepherd, the newly launched insurance startup focused on the construction market, has closed a ~$6.2 million seed round led by Spark Capital, with participation from Susa Ventures, Procore Technologies, Y Combinator, Greenlight Re, Oldslip, and several strategic angels from within the insurtech and fintech ecosystem.
Launched earlier this year, the MGA is after middle market construction clients and it promises brokers “industry leading speed-to-quote.” Brokers can invite clients to a customizable portal for collecting data online and reduce data entry with “native integrations to the tools contractors already use everyday,” among other things. The first integration is with construction software company Procore, which will help reduce the time spent on insurance applications. Procore went public in May raising ~$634 million, and it has around 11,000 customers worldwide based on Q2 2021 data.
Shepherd is led by co-founders Justine Levine and Stephen Buonpane. Prior to Shepherd, Levine was the co-founder and CEO of TradeTapp, a network-based vendor management platform for the construction industry which was acquired by BuildingConnected, a pre-construction platform for real estate owners and general contractors to hire qualified subcontractors. BuildingConnected was later acquired by Autodesk for $275 million and Levine served as the head of risk strategy for BuildingConnected. Buonpane spent ~12 years with ACE/Chubb and his most recent role was EVP, Construction Industry Practice Leader.
“Since 2015, over $5B of venture capital has been invested into the development of construction technology. Hundreds of new products, hardware and software, are rapidly changing the way contractors design, deliver, and manage commercial projects. Yet, despite these advancements in project delivery and contractor workflows, until now, financial services for the construction industry remain largely unchanged. We are committed to driving the same level of disruption across the insurance value chain. We believe contractors should be rewarded and incentivized to invest in technology that makes them safer, more productive, or more efficient. And, we’re betting on a world where the data from technology products is inherently tied to underwriting, pricing, and risk selection.” – Justin Levine, via Shepherd’s blog.