MassMutual Ventures, the corporate venturing unit for insurance firm MassMutual, has participated in a $100m series C round for US-based digital business insurance platform operator Embroker.
The round was led by venture capital firm FTV Capital with participation from HSCM Bermuda, the reinsurance subsidiary of asset manager Hudson Structured Capital Management, as well as Gaingels, Tola Capital, Canaan Partners and Bee Partners.
Founded in 2015, Embroker sells insurance products from commercial carriers through a digital platform that automates the underwriting and insuring process. Its products are backed by reinsurers including Munich Re and Everest Re.
The company claims its algorithm-based risk management process can reduce businesses’ premiums by up to 20%.
The funding will enable Embroker to build its own insurance carrier with the aim of becoming a full-stack insurance technology company. It will also invest some of the proceeds in its Embroker Access platform which lets brokers offer the company’s insurance products to their prospective customers.
Embroker has raised over $140m of funding to date, including $28m in a series B round in April 2019 that was led by Tola Capital and featured XL Innovate and Manulife Capital Ventures, corporate venturing subsidiaries of insurers XL Catlin and Manulife respectively. Canaan Partners, Bee Partners and Nyca Partners also participated in that round.
The company received $12.2m in a 2016 series A round, which was led by Canaan Partners and backed by XL Innovate and Nyca, alongside a debt facility provided by Silicon Valley Bank.
Embroker also picked up $2.2m from undisclosed investors in a seed round in 2015.