Federato, an AI-powered underwriting platform for the insurance industry, has raised $100 million in Series D funding led by Growth Equity at Goldman Sachs Alternatives.
The substantial new capital reinforces a significant change in the insurance industry’s attitude, moving away from “old core” legacy systems and embracing modern software that aligns with the current AI transformation.
Returning investors that also participated in the funding round include Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC.
Jade Mandel, Managing Director at Growth Equity at Goldman Sachs Alternatives, said: “Our diligence in P&C insurance revealed that Federato’s AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems.
“Federato has built the full policy lifecycle solution the market has been waiting for, and we’re excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers.”
Will Ross, Co-Founder and CEO of Federato, commented: “Executives use AI every day and have an intuitive understanding of what it should deliver. But they aren’t getting that from AI bolted on to legacy solutions.
“The rising demand for true AI-native capability has surprised even us, and this substantial new investment from Goldman Sachs will help us deliver what customers need.”
Federato has tripled its revenues in the last year, driven by a combination of new logo growth and significant client expansion since its $40 million Series C raise less than twelve months ago.
This growth has been underpinned by the mainstream adoption of agentic AI, a technology approach that Federato co-founders Will Ross and William Steenbergen have been leaders in for over a decade.
With this latest funding round, which focuses on continued product innovation and global expansion, the company’s raised capital exceeds $180 million.
