Insurtech Platform Authentic Raises $5.5 Million Seed Round
Authentic Founders

Insurtech Platform Authentic Raises $5.5 Million Seed Round

A startup that’s bringing the practice of “captive insurance” to smaller businesses has raised a new round of funding.

About the round:

This week, Authentic announced that it had raised $5.5 million. The seed round was led by Slow Ventures along with participation from Altai Ventures, MGV, Upper90, Clocktower, Commerce Ventures, Mischief Ventures, Core Innovation Capital, and others.

About Authentic:

Authentic is a startup that provides vertical software-as-a-service (SaaS) companies with a “captive insurance” solution. As the company explains, captive insurance is a form of self-insurance where organizations effectively create their own insurance companies. In turn, these businesses can not only create an additional stream of revenue but can also tailor their insurance coverage and enjoy lower premiums. While 90% of Fortune 500 companies reportedly do this, the practice has largely been limited to major companies. However, Authentic’s “Capitive in a Box” aims to change that.

According to the startup, using their platform, vertical SaaS companies can create their programs in a matter of weeks. The Authentic platform includes assistance with legal, underwriting, reinsurance, and claims management. As their site states, “We create and manage an insurance company for you, helping you retain your customers and generate insurance commissions and profits.”

What they’re saying:

Further explaining the pitch behind Authentic, the company’s founder and CEO Cole Riccardi said, “Captive insurance provides many benefits to organizations 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 realize the benefits within days.”

Elsewhere, MGV founder Marc Schroder said of his firm’s investment, “Over the last few years, we’ve seen a lot of software startups becoming FinTech companies by embedding payments and lending products to monetize their customer base. 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.”

My thoughts:

Admittedly, I’m still not 100% sure how captive insurance works — and think the “Captive in a Box” tagline sounds a bit offputting. Nevertheless, as Authentic explains it, the concept does seem intriguing. Therefore, it’s understandable why these venture capital firms would be willing to invest in this early round. With this new funding now secured, perhaps Authentic will have a chance to truly prove its model and attract further investment going forward.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

"The Unbanking of America" Book Review

In her new book " The Unbanking of America: How the New Middle Class Survives" author Lisa Servon looks at everything from the payday loan industry to FinTech while also discussing the changing economics of the middle class.
Charlie and SpeedBump logos

Charlie Introduces SpeedBump Fraud Protection Feature

A FinTech that helps prevent adults from falling victim to scams and fraud is adding a new feature to further that cause. About SpeedBump: Today, Charlie announced the launch of its SpeedBump feature. This tool combines alerts, pauses, and real-time education to help protect older adults who may be vulnerable to scams and fraud. SpeedBump may be activated when Charlie customers take certain actions, such as adding a payee, making...
AMEX card in the middle of a restaurant table full of food

American Express to Acquire Tock from Squarespace

American Express is expanding its dining platform with not one but two acquisitions. About the acquisitions: Today, Amex announced that it will be acquiring the restaurant reservation service Tock from Squarespace (who purchased the company in 2021). The purchase is expected to be for $400 million in cash but is subject to closing conditions, customary adjustments, and regulatory approval. Amex also notes that, as part of the deal with Squarespace,...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...