Slingshot raises $27m seed round to build an insurer for small policies sold at checkout

Slingshot Insurance, a start-up that builds software linking businesses that sell small insurance policies at checkout with the insurers that carry the risk, has raised $27m in a seed round, Crunchbase News reported on 22 October. Rally Ventures, which co-founded the company, and Skyward Group co-led the round. Insurance executive Jim Hays also invested and will join the board.

The company, which describes itself as AI-native, began operating on 1 July and has about six employees. Its first customer and design partner is Vertical Insure, which serves more than 750,000 customers at an average premium of about $25, according to Slingshot. Vertical Insure's chief executive, Brock Noland, is also a Slingshot co-founder.

Slingshot charges a 5% technology fee to administer programmes on its platform and currently works with outside insurers. Chief executive Ethan Genteman, previously chief actuarial officer at Palomar Holdings, told Crunchbase News that the company is not yet a carrier but is "rapidly closing" on one. The first programme is due to launch in October.