Slingshot Insurance Secures $27 Million to Automate Embedded Insurance
Embedded insurance startup Slingshot Insurance has exited stealth mode with $27 million in seed funding to develop AI-driven infrastructure for small-scale policies.
Minneapolis-based Slingshot Insurance has announced $27 million in seed funding to build a platform designed to simplify the distribution of embedded insurance. The funding round was co-led by Rally Ventures and Skyward Group, with participation from insurance industry stakeholders.
The startup focuses on enabling businesses—particularly vertical SaaS providers—to offer small, transactional insurance policies at the point of sale. By utilizing AI to automate data processing and administrative tasks, Slingshot aims to lower the operational costs that often render small-premium policies unfeasible for traditional carriers.
Currently, Slingshot operates as a technology provider, charging a 5% fee for its administrative platform. According to CEO Ethan Genteman, the company intends to transition from a pure software provider to a licensed carrier through future acquisitions. Its first design partner, Vertical Insure, is scheduled to begin using the platform this month.
Slingshot seeks to address the regulatory and technical hurdles that prevent software platforms from offering insurance products. By replacing manual systems and spreadsheets with a centralized digital infrastructure, the company plans to streamline the transition from insurance product concept to operational offering.