Federato has raised $100 million in new capital through a Series D round led by Growth Equity at Goldman Sachs Alternatives, marking one of the most significant recent financings in the insurance technology sector and reinforcing the industry’s accelerating shift from legacy systems toward AI-native platforms. Existing investors Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC also participated.
The San Francisco-based company, which positions itself as the AI-native alternative to traditional core policy systems, said the investment reflects growing demand from insurers seeking technology that keeps pace with AI transformation across the industry. The new capital brings Federato’s total funding to more than $180 million and will support continued product innovation and global expansion.
Federato reported that it has tripled revenue in the past year, driven by a mix of new customer wins and substantial account expansion following its $40 million Series C raise less than a year ago. The company said its momentum is tied to surging adoption of agentic AI, a field its co-founders Will Ross and William Steenbergen have worked in for more than a decade.
According to the company, insurers are increasingly seeking platforms that allow them to tailor their workflows and strategies for an AI-driven future. Federato’s technology enables AI to perform deep, complex analysis, freeing underwriters and frontline teams to focus on nuanced decision-making and relationship-driven work. The platform spans the full policy lifecycle and aims to replace the limitations of legacy systems with AI-native capabilities integrated directly into insurer workflows rather than added on top of outdated infrastructure.
Federato said leading insurers are adopting its platform to transform how insurance is executed in an AI-first environment, noting that its approach gives organizations the freedom to customize their systems while improving efficiency, underwriting precision, and risk outcomes.
The Series D financing aligns Goldman Sachs Alternatives with one of the insurance sector’s fastest-growing AI players. Growth Equity at Goldman Sachs Alternatives has invested more than $13 billion in growth-stage and technology-driven companies since 2003. It is backed by a larger alternatives platform with more than $500 billion in assets under supervision globally.
KEY QUOTES
“Our diligence in P&C insurance revealed that Federato’s AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems. Federato has built the full policy lifecycle solution the market has been waiting for, and we’re excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers.”
Jade Mandel, Managing Director, Growth Equity at Goldman Sachs Alternatives
“Executives use AI every day and have an intuitive understanding of what it should deliver. But they aren’t getting that from AI bolted on to legacy solutions. The rising demand for true AI-native capability has surprised even us, and this substantial new investment from Goldman Sachs will help us deliver what customers need.”
Will Ross, Co-Founder and CEO, Federato
“As compelling as Federato’s agentic AI platform is from a distance, we’ve been even more impressed by the time to value we’ve observed. We’re proud to partner with a team that can match the pace at which we’re growing.”
Michael Waller, VP Technology Business Operations, Mission
“Our vision of the future is underwriters grounded in underwriting excellence, amplified by seamlessly integrated tools that drive efficiency and superior risk outcomes at every step. Our partnership with Federato is vital to this commitment.”
Elizabeth Johnson, Chief Operating Officer, Ascot
