Understory, a leading insurance platform focused on protecting climate-vulnerable industries from severe weather risks, has announced the close of an oversubscribed Series A funding round, securing $15 million. The round was co-led by True Ventures and Prelude Ventures, highlighting strong investor confidence in Understory’s vision and growth potential.
Key Highlights:
- Funding Amount: $15 million in Series A funding.
- Investors: True Ventures and Prelude Ventures co-led the round.
- Purpose: To expand into the renewable energy sector.
Company Overview:
- Location: Understory is headquartered in the U.S.
- Core Focus: Providing insurance solutions to climate-vulnerable industries, leveraging proprietary risk mitigation technology.
Use of Funds:
- Renewable Energy Sector: The funds will be used to launch insurance products tailored for the renewable energy sector.
- Expansion: The company aims to drive its growth in renewable energy and continue to innovate in weather risk management.
Product Success:
- Dealers Open Lot Insurance Solution: This product offers risk management for U.S. auto dealers, protecting inventories across nearly 1,000 locations from Hawaii to Delaware.
- Impact: Understory’s technology has reduced weather damage by over $65 million and decreased overall claim trends by 60%.
Statements from Leadership and Investors:
- Puneet Agarwal, Partner at True Ventures:
“The Understory team has brought a new, next-generation level of data intelligence to the insurance market. This new funding round is a significant milestone, positioning Understory to reshape the property insurance industry and renewable energy landscape. We’re thrilled for the team as they continue to see so much promising traction.” - Tim Woodward, Managing Partner at Prelude Ventures:
“Aligning with Understory’s venture into renewables couldn’t be more perfect for us. Their tech-driven, data-first approach to insurance is exactly what the renewable sector needs to continue its accelerated growth as we transition to a green energy future. We’re excited to be a part of this journey, catalyzing change in critical industries through creating cost-effective insurance solutions that finally address clients’ longstanding frustrations with legacy players.” - Alex Kubicek, Co-founder and CEO of Understory:
“Expanding from a tech-focused startup to a leading figure in the insurance market exemplifies our ability to scale solutions that tackle real-world problems. Our latest venture into renewable energy insurance underpins our commitment to rearchitecting insurance structures that support sustainable industry growth while mitigating environmental risks.”
Leadership:
- Alex Kubicek: Co-founder and CEO.
- Neil Irwin: Co-founder and Senior International Insurance Executive.
Company Vision:
Understory’s mission is to restore and enhance insurance efficacy and build client resiliency against severe weather and volatile global risk environments. By leveraging deep weather technology and global insurance expertise, Understory aims to transform the insurance market and support sustainable industry growth.
With the $15 million Series A funding round, Understory is poised to expand its innovative insurance solutions into the renewable energy sector. The company’s technology-driven approach and strong leadership position it well to address the growing need for effective and scalable insurance solutions in climate-vulnerable industries.
