Understory, an insurance platform protecting climate-vulnerable industries from severe weather risks, announced the closing of a significantly oversubscribed Series A funding round at $15 million to drive its expansion into the renewable energy sector. This funding round, which was co-led by True Ventures and Prelude Ventures, emphasizes investors’ strong belief in Understory’s vision and expansion potential.
After the launch of Understory’s Dealers Open Lot insurance solution – which provides risk management for U.S. auto dealers and has provided protection for dealer inventories across nearly 1,000 locations from Hawaii to Delaware – the company is launching a product offering focused on the renewable energy sector.
This product utilizes Understory’s risk mitigation technology that has already reduced weather damage for its clients by over $65 million and effectively reduced overall claim trends by 60%. And Understory’s mutualized insurance approach, along with unparalleled risk selection and sharing of clients’ best practices, has enabled sustainable and profitable portfolio growth.
This move diversifies Understory’s portfolio and addresses the burgeoning demand for robust, scalable insurance solutions in sectors highly vulnerable to climatic impacts.
Understory is headed by Alex Kubicek and Neil Irwin, co-founder and senior international insurance executive. With their leadership, the company has evolved from a deep tech startup into a full-stack MGA/MGU at the forefront of the insurance industry. And their combined expertise in deep weather technology and global insurance markets has been pivotal in their mission of restoring and enhancing insurance efficacy and building client resiliency against the growing threat of severe weather and a volatile global risk environment.
KEY QUOTES:
“The Understory team has brought a new, next-generation level of data intelligence to the insurance market. This new funding round is a significant milestone, positioning Understory to reshape the property insurance industry and renewable energy landscape. We’re thrilled for the team as they continue to see so much promising traction.”
- Puneet Agarwal, partner at True Ventures
“Aligning with Understory’s venture into renewables couldn’t be more perfect for us. Their tech-driven, data-first approach to insurance is exactly what the renewable sector needs to continue its accelerated growth as we transition to a green energy future. We’re excited to be a part of this journey, catalyzing change in critical industries through creating cost-effective insurance solutions that finally address clients’ longstanding frustrations with legacy players.”
- Tim Woodward, managing partner at Prelude Ventures
“Expanding from a tech-focused startup to a leading figure in the insurance market exemplifies our ability to scale solutions that tackle real-world problems. Our latest venture into renewable energy insurance underpins our commitment to rearchitecting insurance structures that support sustainable industry growth while mitigating environmental risks.”
- Alex Kubicek, co-founder and CEO of Understory
