Pathpoint, a modern wholesaler where insurance agents can get bindable small commercial Excess and Surplus (E&S) quotes, has raised $12.5m in funding.
The round was led by Caffeinated Capital, with participation from other existing investors.
The company supplies retail agents P&C and professional lines products from ten top-rated carriers through its online platform. Agents can receive bindable quotes from multiple carriers, with the technology ensuring commissions are lower than traditional wholesale distributors.
On average, an agent using Pathpoint receives a quote in seven minutes and is able to bind the quote within a day, while traditional wholesale experiences often take days to return quotes.
Since its launch in late 2020, over 5,000 agents have been appointed with Pathpoint. Overall gross written premium quadrupled from 2021 to 2022, and monthly active users tripled.
To further scale distribution, Pathpoint began working with some of the largest networks, aggregators, franchise operations, and digital platforms in the commercial insurance agency space.
Pathpoint launched with 16 of the top 40 in 2022 and plans to use new funding to double this number in 2023. In addition to these partnerships, Pathpoint said it continues to expand supply and iterate on its product with independent agents, who continue to make up 40% of new users, in mind.
Raymond Tonsing, founder and managing partner at Caffeinated Capital, said, “This investment is about deeply investing in Pathpoint’s Go-to-Market function.
“Data indicates that agents who can try Pathpoint even once love using it, but there’s still untapped opportunity in terms of getting in front of more agents and deepening relationships across the distribution base both in terms of existing partners and new ones. Further investment in GTM will build on growth to date and enable Pathpoint to become not only a category defining growing wholesaler, but a profitable one, within the next few years.”
In January 2021, Pathpoint raised $30m in its Series A funding round, which was also led by Caffeinated Capital.
Copyright © 2023 FinTech Global
