Stitch Studio, a US-based InsurTech startup specialising in AI agents for the insurance sector, has raised $3m in a seed funding round led by venture capital firm ManchesterStory.
The Oregon-headquartered company, founded in 2024, attracted backing from ManchesterStory to support its mission of bringing scalable AI to the insurance industry. The investment will be used to strengthen its market presence, enhance its platform’s capabilities, and increase adoption across insurers and intermediaries.
Stitch Studio offers a platform designed specifically for insurance carriers, brokers and managing general agents. Its AI Studio enables organisations to deploy AI agents that automate core insurance functions, including underwriting, claims processing and operations management.
The fresh capital will be directed towards accelerating the company’s go-to-market initiatives and improving the depth and customisability of its insurance-specific AI tools. The funding is also expected to support further development of the platform’s governance and compliance features, ensuring insurers retain control and explainability over AI-driven processes.
The company asserts that its technology was developed from the ground up to meet the unique operational needs of the insurance industry, rather than applying generic AI tools. It positions itself as solving the “last-mile AI problem” by making AI both usable and trustworthy in real-world insurance workflows.
Stitch Studio founder Santoash Rajaram, a second-time InsurTech entrepreneur, said, “This funding validates that the insurance industry is ready to move from AI experimentation to meaningful production deployments. With Stitch, we’re giving insurers access to insurance-specific AI agents out of the box coupled with full control to build, deploy, and govern agents tailored to their operations without compromising compliance, explainability, or control.”
ManchesterStory founding partner Matt Kinley added, “We invest in companies that bring real, durable value to the insurance sector, not just generic AI. Stitch is solving the last-mile AI problem in insurance: how to make AI usable, controllable, and trustworthy at the edge of complex operational workflows. We are very excited to partner with the Stitch team to help expand generative AI solutions to the insurance industry.”
There is no record of any prior funding rounds disclosed for Stitch Studio.
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