Insurtech Vericred has raised $23 million in a Series B funding round led by Aquiline Technology Growth in an offering that was said to be oversubscribed. Vericred describes itself as kind of like Plaid but for insurance. Its API platform connects the health insurance and benefits industry providing the digital infrastructure for the huge industry.
Other investors in the round also include new backers Echo Health Ventures, Guardian Strategic Ventures, MassMutual Ventures and existing investors Riverside Acceleration Capital First Health Capital Partners and FCA Venture Partners.
The company notes that more than 300 carriers, including firms like Cigna, Guardian, Humana, MetLife, Principal, Kaiser and over one hundred Insurtech companies including Rippling, Gusto, Ease, and Namely have joined Vericred’s platform.
Vericred’s API platform is the way insurance carriers connect with new technology partners (HR/benefits software, Insurtechs, consumer apps). This connectivity enables seamless digital experiences and simplified data exchange. Vericred believes that the insurance sector has lagged behind when it comes to digital transformation and thus the opportunity is large.
Michael W. Levin, CEO and co-founder of Vericred, said the announcement was a clear endorsement of what his company is doing:
“We are proud to have attracted the highest caliber of venture and strategic investors, surpassing the goals we initially set out for this fundraise. We are excited to partner with these leading investors who share our vision for building a simplified way for all participants in the benefits ecosystem to connect, communicate, and exchange data rapidly and accurately.”
As part of the funding, two new individuals have joined Vericred’s Board of Directors:Max Chee leads Aquiline Technology Growth (ATG), which is managed by Aquiline Capital Partners and Jessica Zeaske, PhD is a Partner at Echo Health Ventures, identifying and investing in emerging and growth-stage health care companies.