Slingshot Insurance Raises $27M Seed Funding for AI-Native Embedded Insurance Platform

Seed Funding Announcement

Slingshot Insurance, a new AI-native embedded insurance startup, has announced it raised $27 million in seed funding. The investment round was co-led by Rally Ventures and Skyward Group, with additional participation from insurance industry veterans. Rally Ventures is also a co-founder of the Minneapolis-based startup.

Focus on Embedded Insurance

Slingshot specializes in embedded insurance, which involves offering small insurance policies to consumers at the point of purchase, such as during flight bookings or youth sports registrations. The company's software connects businesses with insurers to facilitate these offerings, making coverage available when customers might need it most.

The startup uses AI to streamline data processing and sharing between businesses and insurers. This approach aims to reduce the administrative overhead associated with managing inexpensive policies, which can otherwise make them costly to offer.

Initial Operations and Future Plans

Slingshot's first customer and design partner is Vertical Insure, which serves over 750,000 customers with an average premium of $25. The first program is scheduled to launch this month. Currently, Slingshot generates revenue as a technology provider for outside insurers.

The six-person company, which began operations on July 1, is also pursuing an acquisition to enable it to underwrite policies directly, moving beyond its current role as a technology provider.