Slingshot Insurance, an AI-native embedded insurance startup, has raised $27 million in seed funding led by Rally Ventures and Skyward Group. The Minneapolis-based company, founded by Ethan Genteman, focuses on small insurance policies sold at checkout—such as flight or youth sports coverage—by connecting businesses with insurers via AI-driven software. Its first customer, Vertical Insure, serves over 750,000 customers with an average premium of $25.
Slingshot aims to streamline administrative costs that make low-value policies unprofitable for traditional carriers. The startup currently operates as a technology provider but is pursuing an acquisition to become a carrier itself. It charges a 5% technology fee and plans to launch its first program this month.
Genteman believes embedded insurance is a largely untapped opportunity for vertical SaaS companies seeking incremental revenue. The company, which began operating July 1, has six employees and is working on a product that would let parents buy insurance when signing children up for youth sports. Slingshot’s AI automates data sharing and decision-making between distributors and insurers, replacing spreadsheets and emails with integrated software.
Source: Crunchbase News · Summarized by HeadlinesBriefing