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Propeller, Inc. (Philadelphia), a digital MGA equipped with a proprietary instant issue surety bond platform, has announced that it has raised $6.4M in seed funding led by a consortium of industry partners. The company says this round of funding will enable it to accelerate growth and further its mission of transforming the surety industry. Propellor says it will use the funds to invest in people, finish its development roadmap, expand its product base, and drastically increase marketing and sales efforts to add agents to the Propeller ecosystem.
Propeller reports that, to date, it has signed on over 2,100 insurance agencies nationwide and continues to receive rapid adoption among the agent and broker community. Propeller offers agents and brokers a white-labeled URL that houses nearly 7,000 surety bond obligations and allows both agents and customers to quote, pay, and receive their bonds within minutes. Propeller says it also offers underwriting expertise via proprietary programs, making the solution a “bolt-on” surety department for many agents and brokers, as well as for carriers who partner with Propeller.
“Just as Propeller’s approach to the surety industry has been different, we opted for a unique approach to our seed round,” comments Aaron Steffey, CEO and Co-Founder, Propeller. “Propeller was able to construct our funding from multiple strategic partners within the industry, all of whom believe in our mission to make the surety bonding process fast and easy. Our partners in this seed funding include insurance companies, wholesalers, agents, venture capitalists, and even individuals from within the industry who see our vision and want to be a part of the Propeller story.”
“My Co-Founder and Co-CEO Chris Kolger and I set out to build a high-growth, profitable, sustainable business with the help of our investment partners in an effort to truly propel the surety industry forward,” Steffey adds. “This funding gets us that much closer to our goal.”