(Image source: Federato website.)
Federato (San Francisco) has raised $100 million in Series D funding to expand its AI-native insurance platform, with the round led by Growth Equity at Goldman Sachs Alternatives (New York). Existing investors Emergence Capital, Caffeinated Capital, Stepstone Group, and Pear VC also participated.
Will Ross, Co-Founder and CEO, Federato.
The funding reflects a broader industry shift away from legacy core systems toward AI-integrated solutions capable of improving underwriting efficiency and delivering faster returns on investment, according to a statement from Federato. The vendor says that its platform supports the full policy lifecycle with agentic AI capabilities tailored to the needs of property/casualty insurers.
“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,” says Jade Mandel, Managing Director, Growth Equity, Goldman Sachs Alternatives. “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.”
Federato reports it has tripled revenue since its $40 million Series C raise less than a year ago, attributing growth to new customer acquisition and existing client expansion.
“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,” says Will Ross, Co-Founder and CEO, Federato. “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.”
Elizabeth Johnson, COO, Ascot Group.
Federato’s platform is designed to allow insurers to customize workflows, align with internal strategies, and automate complex analyses. According to the company, this enables underwriters to focus on high-value activities and improves risk selection.
Seamlessly Integrated Tools
“Our vision of the future is underwriters grounded in underwriting excellence, amplified by seamlessly integrated tools that drive efficiency and superior risk outcomes at every step,” says Elizabeth Johnson, COO, Ascot (Pembroke, Bermuda). “Our partnership with Federato is vital to this commitment.”
“As compelling as Federato’s agentic AI platform is from a distance, we’ve been even more impressed by the time to value we’ve observed,” says Michael Waller, VP, Technology Business Operations, Mission (Scottsdale, Ariz.). “We’re proud to partner with a team that can match the pace at which we’re growing.”
Federato reports that, with this round, the company has raised more than $180 million to date. The company states that the new funding will support continued product development and international expansion.