(Detwah Lagoon on the island of Socotra, Yemen. Image credit: Andrew Svk/Unsplash.)
Socotra (San Francisco), provider of a cloud-native core platform for insurance, has announced the closing of a $50 million Series C funding round led by Insight Partners (New York). Existing investors in Socotra inculde 8VC, Portage Ventures, Brewer Lane, MS&AD Ventures, and Nationwide Ventures also participated in the current round, bringing the firm’s total funds raised to date to $96 million.
Founded in 2014, Socotra describes its offering as a powerful core platform providing an alternative to the fragile, monolithic policy administration systems of the past. Socotra characterizes its Series C funding round as highlights the company’s rapid growth and success, with annual recurring revenue (ARR) increasing more than 9.5x over the last three years. With 17 new insurtech customers in 2021 alone, Socotra reports that it now powers dozens of different insurance products for insurers across three continents. The vendor’s customers include major carriers, such as AXA, Mutual of Omaha, Symetra, MS Amlin, and IAG, as well as prominent InsurTech MGAs such as Hippo and Bamboo Insurance.
Socotra says it will use the proceeds of this funding round to further expand product functionality, broaden its reach throughout Europe and Australia, augment customer success infrastructure to support its rapidly growing customer base, and continue extending ecosystem capabilities through Socotra Marketplace, which the vendor describes as the insurance industry’s first no-code app marketplace enabling instant integrations with third-party technology providers.
“Many of today’s core system providers bill themselves as modern without having basics like documentation or continual upgrades,” comments Dan Woods, Founder and CEO, Socotra. “In stark contrast, Socotra is API-driven, well-documented, cloud-native, and a true off-the-shelf product.”
What takes legacy technology months or even years with armies of custom developers, Socotra’s customers can accomplish in weeks—and then upgrades are free, automatic, and non-interruptive, Woods adds. “Now with the support of Insight Partners, Socotra is positioned to scale faster and deliver even more value for the insurance community in the years ahead,” he says.
“Socotra is a truly next-generation platform, which allows customers to embrace cloud-native software via APIs and a microservices architecture,” comments Jonathan Rosenbaum, Managing Director, Insight Partners. “This innovation improves speed of delivery and reduces total cost of ownership for innovative insurers who want to launch new products or rearchitect existing lines of business. Ultimately, this leads to material value for the end consumers looking for customized insurance products with fast time to purchase. We at Insight are excited to partner with Socotra on this next chapter of its growth journey.”
Socotra’s statement on the Series C round asserts that, because Socotra is built on modern technological paradigms, such as open APIs and cloud-native architecture, it offers unique benefits compared to other insurance core platforms, including the following, as described by the vendor:
- Free 30-day trialswith instant access to a fully functional environment;
- Customer empowerment to deploy Socotra entirely on their own, with Socotra-certified engineers among Socotra’s preferred partners, or with any systems integrator in the world
- Rapid and affordable launches of any insurance product, via any distribution channel, and in any geography; and
- Free, automatic, and continuous upgrades, which are safely and asynchronously delivered as insurer systems remain live.