Rainbow, a digitally-enabled managing general underwriter (MGU) specialising in small business insurance, has announced the close of an $8m Series A funding round.
The funding will support Rainbow’s expansion plans, enabling it to broaden its specialised underwriting approach to additional business verticals.
Rainbow has already launched its second insurance programme in select US states, with plans for a nationwide rollout in the coming months.
The round was led by Zigg Capital, with the financing finalised in Q4 2024.
Founded in 2022, Rainbow addresses the unique challenges of the small commercial insurance market.
Its platform has demonstrated strong initial success with its flagship product, an admitted business owner’s policy (BOP) tailored specifically for the restaurant industry.
Currently, this programme operates in 24 states, with expansion into states like New York planned shortly.
The company’s proprietary technology, including its “continuous underwriting” risk monitoring software, is central to its innovative approach to risk management.
The new capital will be used to expand Rainbow’s footprint across additional insurance verticals and markets, enhance its proprietary technology, and attract top-tier talent to its team.
CEO and co-founder Bobby Touran highlighted the company’s vision, stating: “As we continue to prove our thesis for scalable, software-driven underwriting across a growing portfolio of specialised insurance programmes, we’re thrilled to be deepening our partnership with Zigg, a firm that shares our vision for a differentiated approach to profitable insurance underwriting with endless potential.”
Rainbow’s technology platform provides agents and brokers with a seamless quote-to-bind experience and incentivises policyholders to adopt prudent operational practices. By leveraging a data-driven continuous underwriting framework, Rainbow enhances portfolio assessment, improving accuracy and reducing loss ratios.
Zigg Capital General Partner Ryan Orley commented: “As our firm refined its broad InsurTech thesis, we identified that Rainbow has built the most compelling technology platform to serve the restaurant vertical, as well as the SME sector. Moreover, the team Bobby, Shalom, and Jamie have assembled at Rainbow exemplifies the profile Zigg seeks to back – efficient, fast moving, domain expert, and customer centric.”
Since its founding, Rainbow has raised a total of $20m in capital, including the latest Series A funding.
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