Insurtech Rainbow, a managing general underwriter (MGU) specializing in business insurance, has secured $8 mn in a Series A funding round led by Zigg Capital. This investment increases the company’s total funding to $20 mn and will facilitate the expansion of its specialized underwriting solutions into additional business sectors.
In January 2024, Rainbow secured $12 mn in seed funding from investors including Caffeinated Capital, Altai Ventures, Zigg Capital, 8VC, Buckley Ventures, Habitat Partners, and Arch Capital Group Ltd. This investment supports the expansion of their flagship Business Owner’s Policy (BOP) program, designed specifically for restaurants. Initially launched in eight states, the program aims to extend to over 25 states by 2024.
The financing, completed in Q4 2024, enables Rainbow to accelerate the rollout of innovative insurance programs. The company recently introduced its second program, targeting beauty and wellness businesses, now available in Arizona and Michigan, with plans for nationwide expansion.
Founded in 2021, Rainbow initially focused on providing insurance coverage for restaurants. Its flagship program, currently active in 24 states, has demonstrated significant success, reinforcing the company’s confidence in its scalable, technology-driven underwriting model.
CEO and Co-founder Bobby Touran stated, “As we continue to prove our thesis for scalable, software-driven underwriting across a growing portfolio of specialized insurance programs, we’re thrilled to deepen our partnership with Zigg.”
This new capital will allow us to accelerate our expansion into additional verticals, meet growing demand from agent and distribution partners, and continue innovating our proprietary technology while attracting top talent to our team.
Bobby Touran, CEO and Co-founder at Rainbow
Zigg Capital’s General Partner, Ryan Orley, expressed strong support for Rainbow’s vision and execution, noting that the company has built a compelling technology platform to serve the restaurant vertical and the broader SME sector.
He emphasized the team’s efficiency, expertise, and customer-centric approach, highlighting Rainbow’s custom-built software and rapid growth trajectory.
Rainbow has built the most compelling technology platform to serve the restaurant vertical and the broader SME sector. The team exemplifies the efficiency, expertise, and customer-centric approach we prioritise. Rainbow’s custom-built software is powerful, and its growth trajectory is among the fastest we’ve observed for a B2B offering.
With this funding, Rainbow is poised to extend its specialized underwriting approach into new verticals, addressing the needs of underserved sectors. The company’s focus on leveraging innovative technology and maintaining close partnerships with agents and distribution partners positions it as a leader in the business insurance space.
As Rainbow continues its nationwide rollout, its success underscores the growing demand for tailored, technology-driven insurance solutions that address the unique risks faced by businesses.
Rainbow, founded in 2021, is a managing general underwriter (MGU) specializing in tailored insurance solutions for small businesses. The company focuses on specific industry verticals, beginning with the restaurant sector, to provide customized coverage that addresses unique risks.
Rainbow distributes its insurance products exclusively through independent agents and digital partners, emphasizing strong relationships within the insurance community.
Their proprietary technology platform enhances underwriting efficiency and accuracy by integrating data from various sources, such as point-of-sale systems and online reviews. This approach enables real-time risk assessment and dynamic premium adjustments, offering a modernized experience for both agents and policyholders.
The leadership team at Rainbow comprises experienced entrepreneurs with backgrounds in technology, artificial intelligence, machine learning, automation, and insurance underwriting. This diverse expertise drives the company’s innovative approach to insurance, combining technological advancements with deep industry knowledge to deliver specialized, customer-centric solutions.
Rainbow plans to expand its specialized underwriting programs into additional business verticals, leveraging its technology-driven model to address the evolving needs of small businesses across various industries.
