Silicon Valley veterans unveil Stand with $30m funding to tackle climate risks

December 17, 2024

Stand, a new insurance company focused on climate-impacted properties, has officially launched its first product: California homeowners insurance, which is aimed at protecting and fortifying properties against wildfire risks.

The launch comes alongside $30m in funding secured from Inspired Capital, Lowercarbon, Equal Ventures, and Convective Capital. Backed by top-tier reinsurers and an A- rating from AM Best, Stand aims to provide over $2bn in home coverage within its first year.

The insurance market is facing a climate crisis, with insurers increasingly withdrawing from high-risk regions, particularly in California. Following the state’s fourth-worst wildfire season, many homeowners find themselves uninsured, underinsured, or reliant on government plans of last resort. The issue is widespread—almost half of all U.S. homes, valued at $22trn, face severe or extreme risks from climate-driven events.

Stand has reimagined property insurance by combining AI and physics-based modelling with actionable risk mitigation. The company assesses factors like fire, fuel, land, and building structures to create tailored plans that reduce risk. Recommendations can include replacing high-risk vegetation like juniper trees or swapping mulch for gravel in critical areas. These improvements lower a property’s exposure to disasters, allowing for accurate pricing and coverage where other insurers opt out.

Stand co-founder and CEO Dan Preston said, “We are able to build a digital twin of properties and use physics to simulate how extreme weather and disasters would impact them, an approach that has never been used before in the insurance industry.

“We believe the only viable path forward is to re-think how we approach risk itself. At Stand, we use advanced modeling and AI to make homes safer and to protect homeowners in the face of growing climate challenges.”