“`html
TLDR:
- Authentic Insurance, a startup founded in 2022, applies the captive insurance model to software companies.
- After raising $11 million in Series A funding, Authentic plans to expand its product offerings and partner with more software companies.
Article Summary:
Authentic, a startup founded in 2022 by CEO Cole Riccardi, has raised $11 million in Series A funding. Inspired by an insurance program called Big Stakes that incentivized horse trainers to maintain safety protocols, Authentic applies the captive insurance model to software companies. The company partners with software providers like Mindbody, offering them the opportunity to create insurance programs for their customers. Authentic splits the upfront fees with software providers and, after paying out claims, 80% of the leftover funds go back to the software companies.
The Series A funding, led by FirstMark Capital, will help Authentic expand its product offerings to include workers’ compensation, health insurance products, and benefits. The startup, which has already sold over 100 policies through its partners, plans to hire more engineers to further develop its products and expects to sell over 1,000 policies by the end of the summer. Riccardi, with a background in the insurance industry and experience as an investor, has grown Authentic from a team of 3 to 16 employees since January.
Authentic’s unique approach to insurance for software companies has garnered interest from investors and created growth opportunities for the startup. By adapting the captive insurance model to software providers, Authentic aims to revolutionize how insurance is offered in the tech industry.
“`
