InsurTech Cake Secures $1.3M in Pre-seed Funding

The startup seeks to revolutionize the buying, selling, and valuing of insurance books of business. 

(Image source: Cake.)

Cake (Indianapolis), a transactional marketplace designed for independent insurance agents, has announced the completion of a $1.3M pre-seed funding round led by venture capital company Markd (Boulder, Colo.), an insurance/InsurTech-focused venture capital firm. Additional sponsors included 2ndF, Iridium Bloom LLC, 101 Weston Labs, IIANC, and other industry-specific strategic partners. A Cake statement says the close of this round marks a step towards its vision of reshaping Insurance M&A, democratizing it, and widening its reach to agents across various levels.

Adam Bowe, CEO, Cake.

Launched in 2021, Cake’s platform connects independent agents aiming to sell whole businesses or partial accounts with those who seek to expand their operations. Cake says it will use the funding to further improve its platform, ramp up customer acquisition, and broaden essential services, such as in-platform lending and legal support.

Adam Bowe, Cake CEO and co-founder with John Clemmens, CTO, emphasizes the importance of this tool given the aging demographic among the industry’s principal agents and the sizable amount of sub-$1.25M ARR agency books managed by older producers. He insists on facilitating easy access to liquidity from these assets to spur growth for all independent insurance agents.

Making it Simpler for Agents to Adapt to a Changing Landscape

“As we witness a shift away from private equity dominance, our platform makes it progressively simpler for agents to adapt to the changing insurance landscape,” Bowe remarks. “We offer a unique opportunity for agents to buy and sell their books of business, or even fractional sales with slices of their books, with each other.”

Parker Beauchamp, Founder and Managing Partner, Markd.

“I sure wish this tool had been available to me during my time in distribution,” comments Parker Beauchamp, Managing Partner, Markd. “What an opportunity for those trying to scale or exit parts of or their entire agencies fast and effectively. There is a tremendous amount of scale for those seeking it before they reach typical private equity scenarios by buying and selling books or slices of agency businesses. Adam and John built a solution that eases the process of liquidating assets and fostering independent insurance agents’ strategic growth—an endeavor worth investing in. Whether on the brink of acquiring one’s first book of business, ready to retire by selling, or aiming to grow an existing agency, Cake could be a go-to platform.”

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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