Authentic Insurance, a New York-based InsurTech startup, has successfully raised $11m in a Series A funding round.
This investment round was led by First Mark Capital, with additional participation from Slow Ventures, Altai Ventures, MGV, Upper90, and Commerce Ventures, according to InsurTech Insights.
The fresh capital will be used by Authentic to expand its team and introduce new offerings to its product suite, such as workers’ compensation and health insurance products. This move aims to broaden the scope of coverage and benefits available to its clients.
Founded in 2022, Authentic Insurance enables SaaS platforms, associations, and other communities to establish their own captive insurance programs tailored for small business coverage. With a single line of code, partners can introduce their own insurance products. Authentic handles all aspects of underwriting, claims management, and oversees capital markets and reinsurance, earning a fee for these services.
The company primarily serves businesses generating less than $5m in annual revenue.
Since launching its product last September, Authentic Insurance has gained over ten customers, including notable names like Mindbody, Restaurant365, and theCut.
These clients collectively serve approximately one million small businesses. Authentic has already sold over 100 policies through its partners and anticipates selling more than 1,000 by the end of the summer.
The firm is led by CEO Cole Riccardi. In a social media post announcing the funding news, Riccardi expressed his gratitude, remarking, “The Authentic team has built an incredible product that will fundamentally change insurance. We’d like to thank our investors for tackling something very challenging with us. We’d like to thank our partner platforms for seeing the vision and understanding the benefits to users, it will soon be obvious to everyone. I’d personally like to thank my teammates for their heroic effort in pushing our product and company forward every single day.”
Adam Nelson, Partner at First Mark Capital, commented on the investment, adding, “The way commercial insurance is bought and sold has largely remained unchanged since it first came into existence over 50 years ago. Authentic is the first company to virtually eliminate the need for traditional carriers. With a platform approach that enables partners to roll out their own new insurance offerings, it’s been incredible to watch as millions of businesses instantly gain access to a better insurance model on day one.”
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