Equal Parts, a next-generation insurance agency combining the power of traditional relationship-based distribution with best-in-class AI technology, announced it has launched with $10 million in acquisition capital led by Equal Ventures and Max Ventures, the company announced today. And Equal Parts’ goal is to build a new model for independent insurance agencies amid a decade-long flood of consolidation by traditional private equity firms.
Launched by entrepreneurs with expertise in scaling service-based business through acquisition and building AI platforms for digital transformation, Equal Parts will transform insurance distribution by acquiring small agencies and empowering them with AI-powered tools designed to enhance rather than replace the human connection at the heart of the industry.
CEO and co-founder Mike Witte previously founded and scaled energy services leader Workrise (formerly RigUp) from a startup to a $2.9 billion company by complementing the human connections that are foundational in the energy sector with technology that helps them work smarter and more efficiently. And the founding team is rounded out by Mike Meller, who helped craft Workrise’s small business acquisition and growth strategy, and Graham Yennie, who brings extensive experience in applied machine learning and AI implementation.
The insurance industry faces a major generational shift with half of all agents are expected to retire in the next decade, while young professionals are steering clear (less than 25% of the industry’s workforce is under 35). And Equal Parts was founded to usher in a new era of insurance professionals and modernize an industry that many view as archaic and slow-moving.
The company takes a different approach to the private capital consolidation taking place across the industry. And unlike traditional private equity firms that prioritize the bottom line with minimal focus on innovation, Equal Parts’ platform addresses the core challenge of the independent insurance agency: a disconnected ecosystem that requires human intervention at every point. By automating mundane tasks and integrating systems, Equal Parts frees to focus on their most important work, building relationships with clients.
Equal Parts also recently closed on its first acquisition, and plans to close on several more foundational acquisitions over the next 90 days. And the company is focused initially on independent agencies with <$5 million in revenue, a segment composed of exceptional agencies with best-in-class relationships that have been most impacted by the lack of innovation in the insurance ecosystem. As it builds out the acquisition engine, Equal Parts will be able to transact on strong independent businesses of all sizes.
KEY QUOTES:
“Independent agencies grounded in strong relationships are the backbone of the insurance sector, and they are facing significant challenges. We believe that the future of insurance is equal parts innovation and relationships, equal parts technology and tradition — and that the winner will take both of those parts to the extreme.”
– CEO and co-founder Mike Witte
“Smaller independent agencies face a paradox: Growth requires additional service capabilities, but each new product or service creates exponentially more disconnected systems that must be manually bridged by people. Our technology doesn’t replace the human element. It enhances it by removing the administrative burden that so often prevents small business owners from prioritizing client-focused work.”
– Mike Meller
