Insurtech Cake, a transactional marketplace designed for independent insurance agents, has announced the completion of a $1.3 mn pre-seed funding round led by venture capital company Markd.
Additional investors included 2ndF, Iridium Bloom LLC, 101 Weston Labs, IIANC, and other industry-specific strategic partners.
The close of this round marks a step towards its vision of reshaping Insurance M&A, democratizing it, and widening its reach to agents across various levels.
Launched in 2021, Cake’s platform connects independent agents aiming to sell whole businesses or partial accounts with those keen to expand their operations.
Co-Founder and CEO, Adam Bowe, emphasizes the importance of this tool, given the aging demographic among the industry’s principal agents and the sizable amount of sub-$1.25 mn ARR agency books managed by older producers.
He insists on facilitating easy access to liquidity from these assets to spur growth for all independent insurance agents.
As we witness a shift away from private equity dominance, our platform makes it progressively simpler for agents to adapt to the changing insurance landscape
Adam Bowe, Co-founder and CEO at Cake
“We offer a unique opportunity for agents to buy and sell their books of business, or even fractional sales with slices of their books, with each other. Our focus on innovative technology, connectivity, and independent agents makes us exceptional.”
Parker Beauchamp, Managing Partner at Markd, notes: “I sure wish this tool had been available to me during my time in distribution. What an opportunity for those trying to scale or exit parts of or their entire agencies fast and effectively.”
Cake connects independent insurance agents looking to sell a book of business or a slice – a chosen group of accounts – with other agents looking to grow their business.
“Adam and John built a solution that eases the process of liquidating assets and fostering independent insurance agents’ strategic growth. There is a tremendous amount of scale for those seeking it before they reach typical private equity scenarios by buying and selling books or slices of agency businesses”.
Backed by this funding, Cake’s next steps are to further improve its platform, ramp up customer acquisition, and broaden essential services, such as in-platform lending and legal support.
by Peter Sonner
