Vellum Exits Stealth with $7M Seed Round for AI-enabled Insurance Analytics Platform
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NEW YORK, N.Y., October 10, 2023-- Vellum Insurance, an analytics and data management platform for the insurance and reinsurance industry, exited stealth with a $7 million seed round led by Acrew Capital with participation from Flourish Ventures, Fin Capital, Vera Equity, Endurance and 1 Sharpe Ventures. Vellum’s mission is to build seamless, real-time connectivity between carriers, reinsurers and MGAs, unlocking their ability to innovate within an increasingly volatile risk landscape.
Founded in 2022, Vellum’s analytics and data platform connects the insurance value chain from managing general agents (MGAs) to carriers to reinsurers, driving innovation and profitability through enhanced risk management and efficiency. The platform leverages artificial intelligence and machine learning to automatically ingest, validate and aggregate data generated by MGAs and reinsurance transactions. Vellum’s platform also provides an intelligence layer that facilitates real-time risk monitoring, actuarial and underwriting analytics, as well as financial reporting for reinsurers and carriers.
Vellum’s CEO, Julianna Muir, brings decades of experience in insurance and sees how the industry is struggling to adapt to a rapidly changing risk landscape. “Changes in the frequency of catastrophic events, like those we have seen recently in Florida, California and Hawaii, are causing insurers to exit the market, leaving people and businesses with gaps in coverage,” said Muir. “Vellum’s platform supports efforts to innovate in all insurance markets by bringing unprecedented transparency to the relationship between risk partners, building trust and increasing the profitability of and willingness to innovate of all parties.”
“I have experienced first-hand the often archaic data and analytics infrastructure that underpins much of the insurance and reinsurance market,” said Sam Hodges, an investor in Vellum and CEO of Vouch Insurance. “I am tremendously excited by the potential Vellum’s platform has to transform how data and risks are managed by insurers and their capacity partners.”
Vellum currently works with carriers and reinsurers across the United States and Cayman Islands, integrating data from dozens of MGAs and reinsurance treaties into its platform. It supports multiple lines of business across P&C insurance, including property, general liability, inland marine, and auto. The company will use the funds raised to expand the functionality of its platform to meet the needs of its rapidly growing customer base.
“We have been looking for years to invest in companies that are disrupting the decades-old technology that governs how the insurance and reinsurance industry moves and analyses data,” said Lauren Kolodny, founder at Acrew Capital. “Vellum’s data and analytics platform, built specifically for the insurance industry, provides the modernized infrastructure that carriers, reinsurers and MGAs have been crying out for to be able to adapt and innovate in this environment.”
“Modernizing analytics and data management across the insurance value chain is critical to bolstering innovation,” said Sarah Morgenstern, Venture Partner at Flourish Ventures. “Julianna and the team bring a formidable mix of industry experience and technical capabilities to this pressing market opportunity.”
About Vellum Insurance
Vellum is building a modern data and analytics platform built specifically for the needs of carriers and reinsurers that enables better decision-making, efficiency and innovation. Vellum was founded in 2022 by Julianna Muir, John Cappiello and Paul Toomath, who bring decades of experience building and exiting businesses in the insurance, reinsurance and software industries. For more information, please visit velluminsurance.com.