Shepherd, an insurtech company specialising in the commercial construction sector, has garnered $13.5m in a Series A funding round.
The fundraise was led by Costanoa Ventures, with Intact Ventures, Era Ventures, Greenlight Re and Spark Capital also contributing.
Shepherd plans to use the funds to increase the underwriting and software team headcount, expedite product development and scale software offerings.
Launched in 2021, Shepherd combines insurance capacity with underwriting and risk management software alongside a construction software marketplace to simplify complex processes and workflows within the industry.
The company claims that its technology-driven underwriting process has an average response time of just 12 hours, a significant improvement over the industry’s standard response time, which can often take weeks.
Shepherd noted that the commercial construction industry, valued at $10trn, faces mounting challenges including rising claim severity, outdated underwriting processes and a lack of technological adoption.
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These issues threaten to drive up insurance costs and jeopardise the industry’s sustainability, it added.
In line with addressing these challenges, Shepherd is launching a new software solution named Shepherd Compliance.
The tool is designed to streamline and automate vendor compliance reviews, utilising artificial intelligence to process PDF-based data and manage all associated workflows.
Optimised for Shepherd policyholders, the software also boasts integration capabilities with project management platforms such as Procore.
Shepherd CEO Justin Levine said: “There is an urgent need for innovation in the commercial construction insurance industry. Our mission at Shepherd is ambitious but simple: to create the first comprehensive platform that combines top-tier insurance offerings with world-class software to help commercial businesses manage risk and prevent losses.”
Costanoa Ventures general partner Mark Selcow said: “High insurance costs and even unavailability of coverage plagues a sector [commercial construction] already struggling with tight margins and business risk.
“The team behind Shepherd is taking a technology-forward approach, developing innovative insurance products that use modern software and data techniques to create a vastly superior insurance offering. Shepherd delivers better priced, better fit policies for clients, thanks to its data and tech advantages.”