Authentic Secures $5.5 Million in Seed Funding to Unveil Innovative Captive Insurance Platform
Authentic Secures $5.5 Million in Seed Funding to Unveil Innovative Captive Insurance Platform
Authentic, the turnkey insurance platform catering to vertical Software-as-a-Service (SaaS) enterprises, has successfully raised US$5.5 million in seed funding.
Authentic Secures $5.5 Million in Seed Funding to Unveil Innovative Captive Insurance Platform

The investment round, spearheaded by Slow Ventures, witnessed the active participation of prominent backers, including Altai Ventures, MGV, Upper90, Clocktower, Commerce Ventures, Mischief Ventures, and Core Innovation Capital.

Based in New York, Authentic has a robust marketplace reputation – and a team of seasoned professionals hailing from some of the most distinguished technology and insurance companies in the industry. The insurtech’s talent pool includes individuals with extensive experience at renowned organisations such as Next Insurance, Amazon, Canary Consulting, and Aquiline Capital Partners.

The new platform, Captive insurance, is a transformative financial tool, offers a plethora of benefits, ranging from generating additional revenue streams for parent companies to offering tailor-made insurance coverage and reducing insurance premiums. Despite its many advantages, the complex and cost-intensive nature of establishing a captive insurance company has limited its accessibility primarily to large corporations over the past half-century.

In a game-changing move, Authentic has unveiled its “Captive in a Box” platform, which now democratises the world of captive insurance. This innovative solution empowers any Vertical SaaS-affiliated enterprise to launch captive insurance programs for their members within a matter of weeks, effectively levelling the playing field.

Authentic’s turnkey platform streamlines the intricate process of setting up a captive insurance company, encompassing legal formalities such as domicile establishment, as well as managing critical aspects like underwriting, reinsurance, capital management, and claims processing. This revolutionary approach promises to usher in a new era of accessibility and affordability in the realm of captive insurance, making it available to a wider range of businesses.

This impressive $5.5 million seed funding infusion not only acknowledges the transformative potential of Authentic’s innovation but also sets the stage for the company to accelerate its mission of revolutionising the insurance industry. With backing from influential investors, Authentic is poised to reshape the landscape of captive insurance, paving the way for greater financial empowerment among SaaS businesses of all sizes.

Speaking about the recent capital raise, Cole Riccardi, CEO & Founder, Authentic, commented: “Captive insurance provides many benefits to organisations and their members, but until now, setting one up was a very long and expensive process. Through Authentic’s platform, anyone can create their own captive insurance program and realise the benefits within days.”

He continued: “Over the last few years, we’ve seen a lot of software startups becoming FinTech companies by embedding payments and lending products to monetise their customer base,” stated Marc Schroder, founder of MGV. Insurance is the next embedded product, but what makes Authentic a win-win is that software companies, roll-ups, etc., can create a new revenue stream while its members get hyper-tailored insurance policies at a fair price.”

Sam Lessin, Managing Partner, Slow Ventures, added: “Authentic’s ‘captive in a box’ allows them to sidestep the current distribution problems of adverse risk selection that the insurance industry has struggled to overcome. Authentic’s partners stand to benefit from sharing data to better assess and price risk, as they are the ones that reap the rewards from more successful programmes.”

Share this article:

Insurtech Insights USA 2024

Join us at USA's leading insurtech conference at Javits Center on June 5-6th, uniting over 5,000 senior insurance professionals!