By James Thaler

Feb 13 - (The Insurer) - Startup-focused insurtech Vouch has sealed a first close on an Allegis Capital-led Series D funding round and also signed a definitive agreement to acquire small business MGA StartSure.

San Francisco-based Vouch was launched in 2018 and provides business insurance to thousands of high-growth companies.

Vouch offers coverage to early-stage firms and large-scale startups, with the latter catered to by Vouch Horizon, which the company has previously said has delivered “marquee account” wins.

It had previously raised more than $185mn from Silicon Valley institutions and investors, including Ribbit Capital, Redpoint Ventures, Y Combinator, Allegis, Anthemis and MS&AD Ventures.

Vouch’s last publicly announced fundraise was a $25mn Series C-1 funding round led by Ribbit in March 2024. The insurtech said at the time that the insider-led round was oversubscribed.

In September 2021, Vouch announced that it had raised $90mn of funding from a $60mn Series C co-led by SVB Capital and Ribbit and a $30mn Series B-1 led by Redpoint Ventures. The fundraise valued Vouch at $550mn.

The same month, SiriusPoint announced a strategic partnership to provide multi-year underwriting capacity to Vouch, as well as supporting the funding round.

Also at that time, Vouch established its own authorised insurance carrier and expanded its line of insurance products.

Details on the scope of Vouch’s Series D funding round or the firm’s latest valuation, along with the acquisition price for StartSure, could not immediately be confirmed.

Vouch said in 2023 that it grew year-over-year revenue by 66 percent and had “favorable loss ratio outcomes” along with an annual premium retention rate of over 120 percent, alongside improving margins across the business.

It has also previously said that it has paid out “many millions” in claims.

Among the coverages it offers are property, general liability, D&O, EPL, E&O, cyber crime, fiduciary liability, non-owned auto and media liability.

In 2023 it launched an AI insurance product that mitigates nascent AI risks, including large language model hallucinations, regulatory mistakes and intellectual property issues.

Its targeted industry verticals include fintech, healthtech, life sciences, venture, consumer, hardware, B2B SaaS, AI and Web3, along with consumer-oriented businesses.

A spokesperson for Vouch confirmed the general outlines of the StartSure acquisition and the Series D funding round in a statement to The Insurer.

They said that the funding round also included participation from “all other major investors” in the firm, “reinforcing its position as the go-to insurance platform for high-growth companies”.

With the deal, Vouch said that StartSure clients will gain access to a broader suite of insurance products through Vouch’s brokerage team, while Vouch clients will benefit from StartSure’s proprietary MGA programs for coworking and inventory insurance.

“Through this Series D financing and joining forces with StartSure, Vouch is expanding our capabilities to provide unmatched service and innovative products to high-growth companies,” Sam Hodges, CEO of Vouch, said in a statement.

“StartSure’s expertise in insuring startups and flexible workspaces aligns perfectly with our mission, and our latest funding will allow us to expand our brokerage capabilities and develop new insurance products,” he added.

StartSure’s trading partners include Arch, CNA, Coalition, Cowbell and Philadelphia Insurance Companies, through which it offers coworking and inventory insurance, along with a range of coverages that include cyber, professional liability, general liability, D&O and product liability.

StartSure CEO Tim DiPietro commented: “Vouch is a natural home for StartSure. We share a commitment to making insurance simple and accessible for founders.

“Joining forces means our clients will benefit from expanded resources, broader coverage options through Corix, and Vouch’s reputation for exceptional service,” he added.

“With the backing of Allegis Capital and the integration of StartSure, Vouch is accelerating its expansion, ensuring that startups – no matter their stage – have access to tailored, high-quality insurance solutions,” Vouch said.