Federato, a developer of AI-native platforms for the insurance sector, has secured $100 million in Series D funding. The round was led by Growth Equity at Goldman Sachs Alternatives, with participation from existing investors Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC. This investment brings Federato’s total capital raised to over $180 million.
The capital infusion is intended to support continued product innovation and global expansion for Federato’s platform, which is designed to modernize insurance operations. The company’s AI-native solution aims to provide a distinct alternative to legacy core systems by integrating artificial intelligence throughout the policy lifecycle.
Jade Mandel, Managing Director at Growth Equity at Goldman Sachs Alternatives, commented on the investment, stating, “Our diligence in P&C insurance revealed that Federato’s AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems.” Mandel added, “Federato has built the full policy lifecycle solution the market has been waiting for, and we’re excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers.”
Will Ross, Co-Founder and CEO of Federato, noted the increasing demand for AI-native capabilities. “The rising demand for true AI-native capability has surprised even us, and this substantial new investment from Goldman Sachs will help us deliver what customers need,” Ross stated.
Federato reported tripling its revenues in the past year, attributing this growth to both new client acquisition and expanded engagements with existing clients, following its $40 million Series C raise less than a year ago. This growth has been supported by the adoption of agentic AI, a technology area where Federato co-founders Will Ross and William Steenbergen have extensive experience.
Michael Waller, VP Technology Business Operations at Mission, remarked on their partnership, stating, “As compelling as Federato’s agentic AI platform is from a distance, we’ve been even more impressed by the time to value we’ve observed. We’re proud to partner with a team that can match the pace at which we’re growing.”
Insurers are utilizing Federato’s platform to customize their workflows and strategic approaches in an AI-driven environment. The platform’s AI capabilities perform complex analyses, allowing human capital within insurance organizations to focus on nuanced decisions and relationship management. Elizabeth Johnson, Chief Operating Officer at Ascot, highlighted this approach: “Our vision of the future is underwriters grounded in underwriting excellence, amplified by seamlessly integrated tools that drive efficiency and superior risk outcomes at every step. Our partnership with Federato is vital to this commitment.”
Federato’s platform is presented as an independent solution that integrates directly into insurers’ workflows, aiming to deliver improved business outcomes. Goldman Sachs Alternatives manages over $500 billion in assets and has invested over $13 billion in growth-stage and technology-driven companies since 2003.
