Embroker, a San Francisco-based digital insurance brokerage company, announced it has raised $28 million in a Series B round of funding led by Tola Capital according to VentureBeat.
Canaan Partners, Bee Partners, Manulife Capital Ventures, Nyca Partners, and XL Innovate also participated in this round. Including this round and the $12.2 million Series A round in May 2016, Embroker has raised a total of $42 million.
With this funding round, Embroker is going to expand on its platform. Embroker founder and CEO Matt Miller told VentureBeat that the company had a blockbuster year in which more than $1 billion liability coverage was provided to technology companies. Embroker also estimates that it currently works with more than 5% of all active VC-backed tech companies in the U.S. — which is expected to double by the end of the year.
Last year, Embroker’s revenue tripled across its customer base of more than 2,500 companies. And it is on track to hit more than double the revenue in 2019.
“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 Miller via VentureBeat. “We’re 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.”
Embroker essentially connects insurance to organizations with between 10 to 1,000 employees with policies from over 50 commercial carriers including The Hartford and Travelers. Some of the policies are customized including employment practices and liability (EPL) insurance for its Embroker Startup Program and comes with data-driven intelligence tools.
“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,” added new Embroker board member Bill 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.”
And companies are able to track and manage vendor certifications online and customize the requirements by project and receive notifications for noncompliant and expired policies. By automating and digitizing the underwriting process, Embroker is able to provide more tailored coverage within 10 minutes of submitting an application. Embroker is also licensed in all 50 states.
“We’ve been watching the insurance space closely for enterprise companies using data and technology to transform various aspects of the industry,” explained Tola Capital’s Sheila Gulati. “Embroker stood out as a clear category leader, who is overhauling and modernizing the whole business insurance value chain.”