Slingshot Insurance Raises $27M for Embedded Insurance Platform

Slingshot Insurance has emerged from stealth with $27 million in seed funding, according to Crunchbase News. Rally Ventures and Skyward Group led the round jointly, with participation from insurance industry executives including Jim Hays, who will join the board.

The Minneapolis company connects businesses that offer small insurance policies during purchases with insurers that provide the coverage. Its software uses AI to process and share data between the parties, reducing administrative work for policies such as flight, sports and cancellation coverage.

Vertical Insure is Slingshot's first customer and design partner, and the first program will launch this month. Slingshot charges a 5% technology fee to administer programs and is pursuing an acquisition that would allow it to provide insurance backing directly.