Embroker, the digital insurance company that’s radically improving the way insurance works for businesses, today announced its $28 million Series B funding round and the appointment of tech industry veteran Bill Veghte to its board. The round was led by Tola Capital, with participation from existing investors Canaan Partners, Bee Partners, Manulife Capital Ventures, Nyca Partners, and XL Innovate, bringing the companys total funding to date to $42 million. Embroker will use the funding to scale adoption of its insurance management platform, data-driven service offering, and proprietary insurance policies.
Embroker provides businesses with the exact coverage they need, at a lower cost and with less hassle, by digitizing antiquated processes and offering custom-built insurance policies that are underwritten instantly. The companys all-in-one platform streamlines insurance management, giving businesses a unified view of their policies company-wide, real-time claims tracking, and instant certificates of insurance. Customers can buy or renew any type of policy from more than 50 commercial carriers and receive data-driven guidance from Embrokers team of insurance advisors who specialize in specific industries.
Embroker serves growing businesses with 10 to 1000 employees and has grown rapidly since launching in 2016. More than 2,500 companies now trust Embroker for all aspects of their commercial insurance. In 2018, the company tripled its revenue and is on track to more than double revenue again in 2019.
In 2018, the company launched the Embroker Startup Program, a suite of proprietary insurance policies custom-built for technology companies. For the first time, businesses can purchase Directors & Officers (D&O) and Employment Practices and Liability (EPL) Insurance instantly. By automating underwriting and digitizing the entire value chain, Embroker is able to provide better, more tailored coverage and generate an average of 20% cost savings for customers. In less than eight months, Embroker has provided more than $1B in liability coverage to technology companies alone. Embroker estimates that it already works with more than 5% of all active VC-backed technology companies in the U.S. and will exceed 10% by the end of 2019. Embroker is currently developing proprietary digital policies for a range of other industries.
Business insurance has been painful and inefficient for far too long. We are incredibly excited to offer something that is unequivocally better, faster, and cheaper, said Matt Miller, CEO and Founder of Embroker. Were proud of how much time and money our customers have saved and thrilled to have the support and capital needed to further accelerate our growth.
New board member Bill Veghte brings with him more than 30 years experience building and scaling market leading technology platforms. His leadership roles include serving as SVP of Microsoft Windows, COO of Hewlett-Packard, CEO of Survey Monkey and on the boards of technology leaders such as Xero.
I have had the privilege of working with amazing teams to build truly transformative businesses repeatedly over the past 30 years and Embroker clearly has the same opportunity, says Veghte. While the $800 billion commercial insurance industry has remained largely static over the past 30 years, Embroker has the right team, product, and strategy to drive significant and lasting change and this made it an incredibly compelling company to be involved with.
Weve been watching the insurance space closely for enterprise companies using data and technology to transform various aspects of the industry, said Sheila Gulati, Managing Director of Tola Capital. Embroker stood out as a clear category leader, who is overhauling and modernizing the whole business insurance value chain.
Embroker is a digital insurance company that’s radically improving the way insurance works for businesses. The companys digital insurance platform, proprietary insurance products and data-driven advisors are now helping more than 2,500 companies improve coverage and reduce costs. Its suite of proprietary insurance policies, including the first ever end-to-end digital directors and officers policy, streamline the insurance supply chain. This enables Embroker to deliver instant quotes and reduce premiums by an average of 20%. Founded in 2015 and headquartered in San Francisco, Embroker serves business with 10 to 1,000 employees and has raised over $42M of funding from leading fintech investors.
About Tola Capital
Tola Capital is a venture capital firm that focuses on the opportunity to invest in the next wave of enterprise software companies. The firm provides both capital and hands-on engagement to support the growth of its portfolio companies. Tola Capital targets software companies with essential products for enterprise customers, a solid existing customer base, a strong competitive position, and great talent and culture. Tola Capital invests globally and across multiple stages.