US-based commercial insurance underwriting tool developer DataCubes has closed a $15.2m series B round featuring NFP Ventures, the corporate venturing arm of insurance firm NFP.
Venture capital and growth equity firm Palm Drive Capital led the round, which included Altos Ventures, Stage 2 Capital, MPK Equity Partners, Seyen Capital and MK Capital. Nick Hsu, partner at Palm Drive Capital, has joined DataCubes’ board of directors.
Founded in 2016, DataCubes has created a data science-driven software platform called D3 Underwriting that helps commercial insurers accurately appraise risk for the purposes of underwriting insurance claims.
The system uses machine learning and artificial intelligence to automate paperwork for customer applications before scoring the applicant based on their submissions and insights from DataCubes’ internal and external data sources.
The capital will support research and development activities as the company looks to increase headcount by about 50. Its customer base is mainly made up of insurers targeting middle-market or small and medium-sized businesses.
Kuldeep Malik, co-founder and chief executive of DataCubes, said: “The old way of underwriting risks is a drain on both a carrier’s resources and the customer experience it is able to provide.
“This round of funding will give us a boost to support the demand we are seeing from the underwriting community to fix inefficiencies and drive better expense and loss ratio results.”
DataCubes had previously closed a $2.5m series A round in September 2017 that was backed by Seyen Capital and MK Capital.