Insurtech Federato, the insurance industry’s RiskOps underwriting platform, just pulled in $100 mn in a Series D, led by Growth Equity at Goldman Sachs Alternatives with Emergence Capital, Caffeinated Capital, StepStone Group and Pear VC returning for another round. The size of the raise says plenty about where the industry’s mind is drifting.
The company argues this funding wave shows insurers drifting away from old core systems that slow everything down.
More carriers want platforms built with AI baked in from the start, not patched on top of creaky infrastructure.
Federato builds a full policy lifecycle system powered by agentic AI. The tech handles heavy analytical work and guides decision making across underwriting tasks, letting underwriters focus on actual judgement calls and client conversations.
The platform fits straight into current workflows. No huge rip and replace projects. No multi year IT misery.
Alongside the AI, the company introduced Control Tower, a portfolio management system built with input from dozens of P&C carriers.
The problem is straightforward. Insurers face a tidal wave of submissions and can’t sort the good from the noise.
Less than a quarter of bound risk aligns with most carriers’ strategies, which means resources often go to mismatched opportunities.
Federato’s new AI system claims to flip that dynamic by letting underwriters act instantly on high-value risks instead of wading through outdated manual workflows.
The firm more than tripled its revenue over the past year. Mainstream adoption of agentic AI helped, but they also expanded their client base fast after closing their $40 mn Series C less than twelve months ago, led by StepStone Group. Total capital raised now pushes past $180 mn.
In September 2023, Federato has raised $25 mn in Series B funding, led by Caffeinated Capital, with participation from Emergence Capital and Pear VC. This round comes less than a year after the company announced its Series A.
The new money fuels product development and a global expansion push that has been on their roadmap for a while.
Jade Mandel, managing director at Goldman Sachs Alternatives, said their research into P&C showed Federato’s platform delivers a dramatic jump in ROI and efficiency compared with earlier generations of core systems. She said Federato built the lifecycle solution carriers have been waiting for, and the AI piece isn’t hype but a real operational shift.
Federato co founder and CEO Will Ross said insurance leaders already use AI in their day to day lives and know what it should deliver. They don’t see that from AI bolted onto legacy systems. Ross said demand for genuine AI native capability came faster than expected, and Goldman’s investment gives the company the fuel to meet that demand at the pace clients want.
Designed by underwriters for underwriters, Federato surfaces real-time risk and portfolio insights, enabling teams to triage business based on key criteria like appetite, underwriting guidelines, and winnability.
The platform is being used today by a broad cross-section of the insurance industry from multi-billion-dollar insurance carriers to tech-savvy, high growth MGAs.
