Slingshot Insurance Raises $27M Seed to Automate Embedded P&C

Slingshot Insurance emerged from stealth with $27 million in seed financing co-led by Rally Ventures and Skyward Group, according to the company's announcement. The Minneapolis startup was co-founded by Rally Ventures and Ethan Genteman, former Chief Actuarial Officer at Palomar Holdings.

The pitch is infrastructure, not policies. Slingshot says it has built "AI-native infrastructure designed for the unique demands of the embedded insurance market," replacing legacy carrier plumbing with "a single integrated system that uses AI to automate complex workflows and APIs to connect" managing general agents, distribution platforms and capital providers.

"Traditional carrier infrastructure wasn't built for embedded insurance's risk and economic model," Genteman said in the release. "Our infrastructure changes those economics by dramatically lowering the cost of administering policies and accessing capital."

The market framing is where the aggression lives. The company cites forecasts that embedded insurance "could grow from roughly 3% of global P&C premiums today to nearly 20% over the next decade." Rally Ventures Managing Director Justin Kaufenberg puts the thesis more plainly: "The real growth opportunity in insurance today is in the small, everyday policy sold right at checkout."

Vertical Insure, an MGA that Slingshot describes as serving "750,000+ customers at $25 average premium," is the named early customer. Its co-founder and CEO Brock Noland frames the pain inside the release: "We can design the products our customers need almost overnight, but the industry is highly regulated." P&C industry veteran Jim Hays joined the oversubscribed round and will take a board seat. The round lands into a dense tape — one of 425 AI funding stories we've logged in the past 90 days — and the release names no valuation.