What our $100 million Series D raise from Goldman Sachs unlocks for the insurance industry

Since the day we founded Federato, we have been focused on a pent-up desire within the industry to change the way insurance work gets done.

From executives who lead these organizations down to the individual underwriter, claims adjuster, or actuary, there is a genuine feeling that we can all do better for the insureds we serve.

Countless conversations about how one fell into insurance get back to why people stay: insurance is a very real service that helps individuals, businesses, and entire economies move forward in the face of a perilous world. In short, this industry has an impact.

As a technology platform, we measure our impact by the ways our customers bring their unique visions of the future to life through our products. Every day, we discover new and exciting ways customers are building on Federato. This reinvigorates us to continue in our mission.

Today, we’re thrilled to welcome our newest investors from the Growth Equity practice at Goldman Sachs Alternatives into the fold. Alongside our panel of amazing return investors like Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC, our new partners have underwritten the major shift in insurer sentiment away from the Old Core and towards a generation of software in tune with the AI transformation surrounding all of us.

The Old Core, a group of 8 insurance technology companies averaging 36 years in age and who have completed over 90 acquisitions, have limited insurers' vision for change for far too long. The severe lack of ROI from hundreds of millions spent on these systems, the litany of lost jobs, and the plethora of fingers pointed have created a common sentiment amongst insurers that these platforms will not be the bedrock of the AI future that sits before us.

Our new partnership with Goldman Sachs is about more than dollars in the bank. It is about meeting our customers where they are, hearing the clear demand in the marketplace for an independent platform that will be around for the long haul, and doing everything we can to bring the value we’re seeing with our existing customers to as many insurers around the world as we possibly can.

The commitment we’re making is to continue offering AI solutions across the full policy lifecycle that deliver seamless and compelling experiences. It’s to do it organically in a way that means intelligence is built in to everything we do, not bolted on via yet another acquisition. 

Easy to say, hard to do…right? Game on. This is the moment to double down in partnership with the industry and change the way insurance works.

Onward!