Insurance technology company Corgi on Thursday announced a $106 million Series B1 funding, valuing the company at $2.6 billion, just three weeks after announcing a $160 million Series B at a valuation of $1.3 billion and four months after announcing a $108 million Series A. The company provides insurance and works with startups in areas such as technology, cyber, and general liability, among others. Customers also include Deel and Artisan.
Even in the current go-go trading environment, that ordering is noteworthy. While it's become almost routine for startups to raise funding in quick succession in successive rounds, a company doubling its valuation in three weeks is suspiciously unusual, especially given that both rounds had the same investors.
Kanyi Maqubela of investor Kindred Ventures cited the company's momentum when asked what significant events warranted this kind of surge in such a short period of time. While this may be an explanation that satisfies some, the more common practice is starting to come under scrutiny in the LP world. “There is a growing distrust of internal price hikes,” said one LP who backs a number of venture funds, requesting anonymity. This exit mechanism person specifically said:[I]FA company [is] LPs realize that there is no real liquidity event, just the price going up. ”
A particular concern is that for a fund that invests at a certain valuation and increases it three weeks later, the portfolio's performance could look stronger on paper than the underlying business would justify.
In this case, Maqubela suggested it doesn't matter to Kindred's limited partners or to Corgi's other investors, including Prime Capital, Leblon Capital, Alumni Ventures and Y Combinator.
“LPs really like exits more than anything,” Maqubela said in a message to TechCrunch. “We're discounting the value of the markup because it doesn't necessarily reflect reality.” In this case, the increased revenue would streamline the new round, he added.
Founded in 2024 by Emily Yuan and Niko Laqua, Corgi says it is building coverage for what it calls a “new category” of risks, while also addressing markets that are often underserved by traditional insurers, including startups and AI-related companies, and the unique liability issues they face.
“Corgi covers everything from cases where AI systems cause financial loss, misinformation, operational failures, and compliance issues,” Laqua told TechCrunch. “Many traditional policies exclude or gloss over these risks.
Corgi is not alone in the insurtech market. Y Combinator-backed Vouch is also active in a similar space.
Asked about the flurry of rounds, Laqua said insurance is a “very capital-intensive industry” and that “demand is rapidly accelerating with new product lines and partnerships.” Building an AI-native platform increases the cost even more.
“While we are best known for our business insurance products, the additional capital will be used to expand into new insurance categories, expand our AI underwriting platform, expand our embedded distribution partnerships, and continue to grow our team,” said Laqua.
Corgi has currently raised a total of $378 million in funding from investors.
Correction: The title of this heading originally incorrectly listed the rating due to an editorial error.
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