Founded in 2017, the downtown D.C.-based insurance tech startup provides workers’ compensation insurance to small and medium-sized businesses via its website. This latest round of funding was led by Gallatin Point Capital with participation from existing investors including Greycroft, SVB Capital, Aspect Ventures, Elefund and Sirius International Insurance Group.
Per a press release, Pie plans to put $27 million of the fresh funding toward its own growth and expansion, while $100 million will go toward launching a new affiliate company, Pie Carrier Holdings, to create and purchase licensed insurance companies. Through its new venture, Pie will also issue a portion of its own insurance policies.
“We’re impressed with the results Pie has achieved in such a short time period,” said Matt Botein, cofounder and managing partner at Gallatin Point Capital, in a statement. “We welcomed the chance to contribute to their expansion strategy in a meaningful way.”
Since selling its first insurance policy in March 2018, Pie has grown to expand its workers compensation offerings to 34 states and D.C. The company plans to continue expanding to more markets and has already brought its offerings to independent insurance agencies.
“We’re incredibly excited to partner with Matt and his team on this innovative approach toward solving one of the biggest challenges facing a growing insurtech company — building a capital structure that supports both our rapid growth and balance sheet needs,” said Pie cofounder and CEO John Swigart. “This financing enables Pie to continue our expansion, even during these uncertain times, while also forming the foundation for our future.”
With this new investment, Pie Insurance has raised $188 million in venture capital to date, including a $11 million Series A funding round in August 2018 and a $45 million Series B funding round last March.