Slingshot Insurance raises $27 million

Minneapolis-based Slingshot Insurance has emerged from stealth with $27 million in seed funding co-led by Rally Ventures and Skyward Group. P&C industry veterans also participated, including Jim Hays, who will join its board.

Co-founded by Rally Ventures and Ethan Genteman, former chief actuarial officer at Palomar Holdings, Slingshot provides technology and access to insurance capacity for MGAs, software platforms, and distributors developing embedded insurance products.

The company targets small-premium products in areas including amateur sports, travel, and the gig economy. Its platform uses AI to automate data-heavy workflows and APIs to connect distribution partners and capital providers. Slingshot says lowering administration and capital-access costs can make products viable that traditional carrier infrastructure struggles to support.

Vertical Insure  is an early customer and design partner. The embedded insurance MGA serves more than 750,000 customers with an average premium of $25. CEO Brock Noland said carrier approval processes and the need for delegated authority have slowed its ability to launch products.