AI Embedded Insurance Startup Slingshot Raises $27M Seed to Automate Small Policy Management
US-based AI startup Slingshot raises $27M seed round to use AI for reducing administrative costs of small-value embedded insurance policies.
Slingshot Insurance, a Minneapolis-based AI-native embedded insurance startup, has emerged from stealth with $27 million in seed funding. The round was co-led by Rally Ventures and Skyward Group, with participation from insurance industry veteran Jim Hays, who will join the board.
The company focuses on small insurance policies sold alongside other purchases, such as coverage during flight bookings. Its core mechanism uses AI to connect policy distributors with insurers, automating data-heavy tasks to address the high administrative costs that traditionally make low-premium policies unprofitable. CEO Ethan Genteman noted that manual coordination quickly erodes margins on policies averaging just $25.
Currently operating as a technology provider charging a 5% fee, Slingshot is pursuing the acquisition of a licensed insurer to underwrite policies directly. Its first customer and design partner, Vertical Insure, serves over 750,000 customers with an average premium of $25. The company's first program is scheduled to launch this month.