March 24, 2023

Pie Insurance, which provides Provides workers’ compensation insurance for small businesses and has closed a $315 million Series D funding round.

In 2021, the size of this round will not be dramatic. But in today’s environment, investors are pulling their money, venture capital has slowed sharply, and the $315 million round is notable.

The financing more than doubles Pie’s total raised since its founding in 2017 to more than $615 million. The company claims this is the largest funding round for a U.S. P&C (Property & Casualty) insurtech company this year. But this has not been independently verified by TechCrunch.

Valuations were not disclosed.

The Washington, D.C.-based startup uses data and analytics to offer small and medium-sized businesses a digital and more affordable way to get insurance, the company said it has already Its total premiums more than doubled and the number of policyholders and partners doubled.

Centerbridge Partners and Allianz X, the digital investment arm of Allianz Group, co-led the round. White Mountains Insurance Group also joined as a new investor, and previous backers Gallatin Point Capital, Greycroft, Acrew Capital and others also participated in the round.

“This funding round is a landmark round on multiple fronts,” Pie co-founder and CEO John Swigart said in a written statement. “Growth-stage startups, especially insurtechs. , is facing a challenging fundraising environment, it’s no secret. However, Pie’s ability to grow rapidly, while still focusing on delivering strong unit economics and a sustainable loss rate, proved to be a key differentiator factor.”

Pie’s customer base includes a range of small businesses, including trades, contractors, landscapers, janitors, auto shops and restaurants. The company sells its insurance directly through its website and also primarily through thousands of independent insurance agents.

span success Multiple distribution channels Combined with “impressive loss rate” Eric Hoffman, managing director of Centerbridge Partners, was brought in to co-lead the investment.

Lauren Kolodny, a founding partner at Acrew Capital, noted that it’s worth noting that workers’ compensation insurance is the only business insurance that almost every company in the United States has to purchase.

Going forward, Pie plans to use its new capital to expand into new business areas and transform into a full-stack operator.

As TC’s Alex Wilhelm wrote earlier this year: The falling value of public insurtech unicorns was a theme the exchange reported throughout last year, noting that losses have mounted as valuations have fallen from low to low.However, when CB Insights dropped Its 2021 fintech data collectionit noted that global insurtech venture capital activity hit a new high this year.

This week, we reported on the rise of specialty insurance providers Boundless Rider and CoverTree, which offer products for e-bike and prefab homeowners, respectively.

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