Madison-based insurtech firm Understory has closed a $15 million Series A funding round. The oversubscribed funding round was led by San Francisco-based True Ventures and Prelude Ventures.
“With the infusion of this funding, we are poised to bring our proprietary risk mitigation technology to the renewable energy industry,” said Alex Kubicek, co-founder and chief executive officer of Understory, in a LinkedIn post. “Our ‘Dealers Open Lot’ insurance solution has already made a significant impact, insuring over 1,000 rooftops nationwide and reducing claim trends by 60%. We are confident that we can replicate this success in the renewable energy sector, having already mitigated hail damage for both industries by over $65 million.”
Understory, established in 2012, manufactures weather sensors that are placed in fields to collect hyperlocal weather data. The company then analyzes data on historical, current and forecasted weather events to provide insights and early risk detection.
In 2019, Understory first entered the weather insurance industry with “Auto-Hail Safe,” an insurance policy for car dealerships who incur hefty costs when their unprotected lots are struck by hail storms.
The company’s Dealers Open Lot insurance option provides an affordable risk management solution for auto dealers across the country. Because each Understory member becomes an owner of the independent insurance company, they must meet several criteria to join, including having a track record of profitability and stability and better than average loss histories. Having these prerequisites helps keep premiums and deductibles affordable.
