Comulate Secures $20M Funding to Modernize Insurance Operations

The Rising Importance of Insurance Technology

Catastrophic events, such as the wildfires experienced in Los Angeles, result in hundreds of billions of dollars in damages. This places significant emphasis on the crucial role the insurance industry plays in recovery and rebuilding efforts.

These disasters also generate substantial financial losses for insurance companies themselves. Consequently, increased scrutiny will be directed towards the operational efficiency of these institutions.

Comulate Secures $20 Million in Series B Funding

A startup focused on enhancing these operations, Comulate, has recently announced a $20 million Series B funding round. This investment will be utilized to broaden its technological capabilities and expand its operational scale.

The funding round was co-led by Bond and Workday, a leading provider of back-office solutions. This follows a period of considerable growth for Comulate.

Rapid Growth and Revenue Tripling

Throughout 2024, Comulate experienced a tripling of its revenues. The company reported a high volume of inbound inquiries from major corporations, leading to a decision to bypass a Series A funding round and proceed directly to Series B.

While specific revenue figures remain undisclosed, the company confirms its revenue is currently in the tens of millions of dollars.

Early Investment and Company Origins

Comulate had previously secured $5 million in funding, including investment from Spark Capital. The company’s current valuation has not been publicly released.

CEO Jordan Katz, alongside CTO Michael Mattheakis, initially envisioned a different path for the company. They aimed to develop software solutions for fellow software-as-a-service (SaaS) businesses – essentially, “SaaS for SaaS.”

A Shift in Focus to the Insurance Sector

However, they quickly recognized a saturated market. Katz noted that Silicon Valley already had ample software solutions created by professionals addressing their own challenges.

This realization prompted a strategic shift towards the insurance industry, an area where they initially lacked expertise.

An Untapped Market

This proved to be a prescient decision. The insurance sector, often linked with financial services, has historically been underserved by innovative, specialized technology.

Existing billing and revenue management tools are often generic enterprise solutions, or rely heavily on manual processes. Workday’s investment reflects Comulate’s focused approach, contrasting with Workday’s broader platform strategy.

Addressing a Critical, Overlooked Area

Comulate addresses a common issue in enterprise IT: critical processes are often neglected until a crisis exposes systemic weaknesses.

“It’s a sleepy, but critical area,” stated Jay Simons, General Partner at Bond, drawing on his experience as the former president of Atlassian.

Identifying such areas presents a prime opportunity for success in the enterprise software market.

Current Clients and Automation Capabilities

Comulate’s current clientele includes prominent firms such as The Baldwin Group, IMA Financial, Risk Strategies, and The Hilb Group.

While not explicitly positioning itself as an “AI” company, Comulate leverages machine learning and AI tooling to automate processes and enhance analytics. The company reports having saved its customers approximately 260,000 work hours in 2024.