Pie Insurance, an insurtech company that provides workers’ compensation insurance to small businesses, announced Wednesday it secured a $315 million Series D round. The Series D more than doubled its total funding raised to over $615 million.
Pie’s most recent round, co-led by Centerbridge Partners and Allianz X, is the largest round of financing for any U.S.-based property and casualty insurtech company this year, according to a statement.
The size of this funding round is also notable, given the slowdown in venture capital funding this year and the economic uncertainty that comes with a bear market. Nationally, VC funding dropped to $62.3 billion last quarter, which is down from the $81.9 billion raised in Q1 and the $94.4 billion raised in Q4. In Denver, however, startups raised $2 billion in Q2, which was double the amount raised during Q1.
“This round of financing is monumental in more ways than one,” Pie co-founder and CEO John Swigart said in a statement. “It’s no secret that growth-stage startups, and specifically insurtechs, are facing a challenging fundraising environment. However, Pie’s ability to grow rapidly while still focusing on delivering strong unit economics and sustainable loss ratios is proving to be a key differentiator.”
Pie is dual-headquartered in Denver and Washington, D.C. It currently has more than 400 employees, or Pie-oneers, with 168 of those employees based in Colorado. With the new funding, the company said it plans to hire across nearly every team.
The company plans to grow as it expands into new lines of business, transitions to a full-stack insurance carrier and continues to evolve its proprietary pricing algorithms.
Currently, Pie offers workers’ compensation insurance to small businesses in 38 states and Washington, D.C. The company announced in May that it increased its annualized run rate premium to nearly $300 million in the first four months of 2022.
“Pie is disrupting the highly fragmented small business commercial insurance market through our proprietary technology which more accurately prices and underwrites insurance risks,” Swigart said. “We believe the insurtech 2.0 phase of this industry-wide transformation will be built by companies like Pie that leverage their technology to ‘do the insurance better’ and deliver superior traditional insurance metrics along with a delightful customer experience.”
Prior to the Series D round, Pie most recently went out for funding last year when it announced a $118 million Series C round.
