Slingshot Insurance, an AI-native embedded insurance startup, has emerged from stealth mode with $27 million in seed funding. The round was co-led by Rally Ventures and Skyward Group, with participation from insurance industry veterans, including Jim Hays, who joins the company board.
Led by CEO and founder Ethan Genteman, the six-person startup focuses on embedded insurance for small policies. The company provides software that connects businesses with insurers, using AI to automate data processing and reduce administrative costs. It charges a 5 percent technology fee for program administration.
Vertical Insure, the company's first customer and design partner, serves over 750,000 clients with an average premium of $25. Slingshot, which began operations on July 1, is currently pursuing an acquisition to gain the ability to back policies itself as a carrier.
The startup aims to help vertical SaaS companies integrate insurance products into their platforms. By replacing manual processes with automated software, Slingshot intends to make small-scale insurance programs viable for businesses that previously struggled with the administrative complexity of the insurance industry.
