Federato, the AI-native insurance software provider, has raised $100m in a Series D funding round led by Growth Equity at Goldman Sachs Alternatives, with participation from existing investors Emergence Capital, Caffeinated Capital, StepStone Group and Pear VC.
The company said the latest funding underlines a growing shift in the insurance industry as firms move away from legacy “old core” systems and instead embrace platforms built with AI at their foundation.
Federato develops a full policy lifecycle platform powered by agentic AI. Its technology conducts complex analytical work and supports decision-making across underwriting processes, enabling insurers to focus on nuanced judgement and client relationships. The platform is embedded directly into existing workflows, allowing for seamless integration rather than requiring major system overhauls.
Federato has more than tripled its revenues during the past year, supported by the mainstream adoption of agentic AI and significant client expansion since its $40m Series C raise less than a year ago. The firm has now raised over $180m to date, with the new capital earmarked for continued product development and global expansion.
Growth Equity at Goldman Sachs Alternatives managing director Jade Mandel said, “Our diligence in P&C insurance revealed that Federato’s AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems. Federato has built the full policy lifecycle solution the market has been waiting for, and we’re excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers.”
Federato co-founder and CEO Will Ross said, “Executives use AI every day and have an intuitive understanding of what it should deliver. But they aren’t getting that from AI bolted on to legacy solutions. The rising demand for true AI-native capability has surprised even us, and this substantial new investment from Goldman Sachs will help us deliver what customers need.”
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