Sayata Raises $35M in Series A Funding for Business Insurance

Sayata Secures $35 Million Extension to Series A Funding

Sayata, an insurance broker and carrier marketplace, has successfully raised an additional $35 million in funding as part of its Series A round. This follows an initial $17 million raised in August of the previous year.

Investment Details

The funding extension was co-led by Pitango Growth and Hanaco Ventures. Existing investors, including Team8 Capital, Vertex Ventures, Elron Ventures, and OurCrowd, also participated in this round.

Significant Revenue Growth

This new capital injection comes on the heels of substantial growth for the Boston-based company. Sayata experienced over ten times revenue growth throughout 2021.

Addressing a Complex Process

Founded just two years ago, Sayata aims to streamline the insurance procurement process for small and medium-sized businesses (SMBs). Typically, these businesses rely on insurance brokers to navigate the complexities of obtaining coverage, rather than dealing directly with insurance providers.

The Traditional Brokerage Challenge

According to Asaf Lifshitz, co-founder and CEO of Sayata, the conventional process is notably time-consuming and manual. Brokers dedicate significant time to gathering quotes, clarifying options for clients, processing applications, and coordinating with insurers to finalize policies.

Sayata’s Automated Marketplace Solution

To address these inefficiencies, Sayata has developed a fully automated, online marketplace. This platform delivers multiple insurance quotes from prominent providers based on key business information provided by the broker.

These quotes are accompanied by tailored marketing materials, enabling businesses to easily select and secure the appropriate coverage.

Benefits for Brokers and Clients

By utilizing Sayata, brokers can offer their clients a wider range of coverage options and respond to inquiries more rapidly. This streamlined process often results in clients choosing the insurance solutions presented through Sayata’s broker network, as stated by Lifshitz.

Current User Base and Partnerships

Currently, Sayata boasts a user base exceeding 1,000, representing over 100 brokerage and carrier partners. The company collaborates with leading insurance providers such as Axis, Brit, Hiscox, and Tokio Marine, alongside innovative managing general agents like At-Bay, Coalition, Cowbell, and Corvus.

Expansion Plans and Total Funding

Since its inception in 2017 by Lifshitz, Avishay Maya, and Iddan Golomb, Sayata has now raised a total of $60 million. The additional funding will facilitate expansion of the company’s team, which has already grown from 17 to 47 employees in the past year.

Targeting a Large Market Opportunity

This investment also allows Sayata to pursue a larger share of the SMB insurance market, estimated to be worth over $100 billion in the United States alone.

Future Development and Product Expansion

“A significant demand exists for a more efficient method of securing commercial insurance for SMBs,” Lifshitz explained. While the platform currently focuses on cyber insurance, clients have requested the addition of further insurance lines.

“Extending this funding round will accelerate our ability to expand into new coverage areas and meet this growing demand,” he added.