Slingshot Insurance Launches AI Platform for Embedded Coverage

Slingshot Insurance, a Minneapolis-based startup, has emerged from stealth with $27 million in seed funding and a six-person team. The company, led by first-time CEO Ethan Genteman, provides an AI-native infrastructure platform to automate the distribution of embedded insurance for vertical software businesses.

AI-native platform for embedded insurance

Slingshot's platform connects vertical SaaS platforms, managing general agents, and insurance distributors to replace manual processes like spreadsheets and emails. The AI-driven software automates high-volume, data-heavy workflows for underwriting, approvals, reporting, and claims coordination via APIs. This targets the regulatory and operational complexity that has limited adoption of low-cost, transaction-based policies.

The company aims to help SaaS providers create an incremental revenue stream beyond subscription fees. It enables insurance programs for niche, high-frequency use cases where policies are purchased as part of another transaction.

Potential embedded insurance products include:

Slingshot earns revenue as a technology provider, charging a 5% fee to administer programs for outside insurers. The company is pursuing an acquisition to back policies itself. Ethan Genteman said, "We're not a carrier yet, but we are rapidly closing on our carrier."

First customer and use cases

Its first customer and design partner is Vertical Insure, which serves over 750,000 customers with an average premium of $25. Vertical Insure will use the platform to offer insurance products tied to transactions like youth sports sign-ups. Rally Ventures noted Vertical Insure's prior difficulty finding insurance partners with systems that supported faster product launches as a catalyst for Slingshot's creation.

Vertical Insure co-founder Brock Noland stated that the industry's antiquated approval process slows everything down. Slingshot provides white-glove service to help vertical SaaS companies handle insurance product development and regulatory requirements.

Funding and strategic backers

The $27 million seed round was led by Rally Ventures and Skyward Group, who also co-founded the company. Insurance executive Jim Hays participated in the funding round and joined the board. The company intends to use the funds to expand operations and accelerate development and deployment of its infrastructure platform.

Rally Ventures provides insurance backing, underwriting, reporting, claims handling, and distribution support. Justin Kaufenberg, managing director at Rally Ventures, previously ran SportsEngine where insurance became a key revenue source.

Founders and background

Slingshot was founded by CEO Ethan Genteman, who was chief actuarial officer at Palomar Holdings from 2019 until July 1, when he left to run the startup. The six-person team began operations on that date. The company plans to use the funding to expand operations and accelerate development and deployment of its infrastructure platform, with a first program launching this month.