InsurTech startup Ledger Investing has raised $75m in Series B funding led by WestCap to democratise insurance risk capital.
The round also saw participation from Teachers’ Venture Growth and Intact Ventures, and previous investors, SignalFire, MassMutual Ventures, Allegis Capital and Accel.
Ledger Investing is a marketplace connecting insurance risk with capital. It claims to address the biggest challenges that have historically hampered innovation in the insurance and capital markets.
For example, according to Ledger, insurance capital is inefficient. It said that every other financial sector has successfully used securitisation to access large pools of capital and eliminate unnecessary frictional costs, making consumer credit, mortgages, real estate, and other streams of cash flows into investable asset classes; insurance is next.
The company has placed over $400m in premium into the capital markets, and said it is on track to exceed $1bn by the end of the year. Managing General Agents (MGAs) and insurance carriers have leveraged the marketplace for multi-year underwriting capacity and access to alternative capital.
Samir Shah, CEO of Ledger Investing, said, “We are well on our way to creating a trillion dollar asset class and changing the fundamentals of how insurance risk has connected to capital since the dawn of the (re)insurance industry.
“We have built sophisticated risk and capital infrastructure to address the industry’s structural inability to provide insightful and reliable information to capital providers. Our technology benefits all stakeholders by bringing greater efficiency and transparency to every transaction.”
This past week has seen numerous deals from the insurance and InsurTech space. For example, Openly a technology-enabled provider of premium homeowners’ insurance through independent agents, raised $75m in Series C funding.
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