- Insurance tech company Pie Insurance announced it has closed $27 million in a new round of funding and capital commitments
Insurance tech company Pie Insurance announced it has closed $27 million in a new round of funding and capital commitments. Gallatin Point Capital joined Pie’s current investors in this round of funding and it included participation from Greycroft, SVB Capital, Aspect Ventures, Elefund, and Sirius International Insurance Group, Ltd. This round of funding also includes $27 million to support the continued growth and expansion of Pie Insurance’s offerings for small business owners. And the additional $100 million equity capital commitment will support Pie’s strategic initiative to form and purchase licensed insurance companies.
Launched in 2017, Pie Insurance was founded to provide workers’ compensation insurance to small businesses, directly through its website and also through thousands of independent insurance agents. And in the past year, Pie Insurance and grown its written premium 150% to nearly $19 million in Q1 of 2020.
So far, tens of thousands of small businesses have received quotes using the company’s simple online experience. Many of those customers were driven to the service through its recent national TV ad campaign.
And Pie has also expanded its availability through independent insurance agents as the company added hundreds of additional agencies this year. Plus Pie offers workers’ comp coverage in 34 states and in Washington DC. Plus the company will continue to expand across the nation to serve more small businesses, either directly or through their agents.
The next stage of Pie’s growth includes the formation of a new affiliated company that also includes Pie Carrier Holdings — which will create and purchase licensed insurance companies. Pie Carrier Holdings will own the licensed insurance companies that Pie will use to issue a portion of its insurance policies. And Sirius Group is also investing directly in Pie Carrier Holdings and will continue to issue insurance policies offered by Pie.
Key Quotes:
“We’re incredibly excited to partner with Matt and his team on this innovative approach toward solving one of the biggest challenges facing a growing insurtech company—building a capital structure that supports both our rapid growth and balance sheet needs. This financing enables Pie to continue our expansion, even during these uncertain times, while also forming the foundation for our future.”
– John Swigart, Pie’s Co-Founder and Chief Executive Officer of Pie Insurance
“Pie continues to demonstrate significant momentum, even in the current economic climate. We’re pleased to help fuel the company’s next stage of growth as they transform the market for small business insurance.”
– Ian Sigalow, Co-Founder and Partner at Greycroft
“We’re impressed with the results Pie has achieved in such a short time period. We welcomed the chance to contribute to their expansion strategy in a meaningful way.”
– Matt Botein, Co-Founder and Managing Partner at Gallatin Point Capital
