Notch, an AI operating system for regulated industries, has closed a $30m Series A funding round, taking its total capital raised to $45m.
The raise was led by Headline and supported by Lightspeed Venture Partners, Jibe Ventures, Illuminate Financial, and Phoenix Insurance.
The multi-firm backing reflects mounting demand among regulated businesses for AI automation that can deliver operational results while maintaining accuracy and compliance oversight.
Proceeds from the round will fuel Notch’s US expansion and drive further development of its platform, which is designed to serve global insurers, large brokers, and financial institutions.
The company reported a 12x increase in annual recurring revenue over the past 12 months, with uptake spanning leading insurers, financial services firms, and other organisations with complex workflow requirements.
Notch’s platform deploys AI agents across both conversational and back-office operations. For customer-facing and partner interactions, the system handles policy servicing requests, document and data collection, structured intake for claims and underwriting submissions, and inquiries that require execution at the system level.
It also serves as a co-pilot for internal teams, allowing adjusters, underwriters, and service representatives to query lengthy claim files, policy documents, and submission materials using natural language, receiving traceable answers grounded in source data alongside rapid summarisation of complex files.
On the back-office side, the platform ingests documents and communications, extracts structured data, classifies and routes submissions or claims, and flags time-sensitive requests for the appropriate teams.
Founded in 2021, Notch began its life as a specialty insurer before pivoting to become a platform business. The company built its AI system internally after finding that available tools at the time were unpredictable, difficult to audit, and unfit for heavily regulated environments. That internal system eventually became a commercial product — one that enables regulated businesses to roll out AI across their operations, monitor performance, and scale with confidence.
Notch co-founder and CEO Rafael Broshi said, “The insurance industry is beginning to understand the full potential of agentic AI.
“However, much of the market today is focused on point solutions that automate individual tasks, resulting in fragmented systems and mounting technical debt. The bigger opportunity is connecting broker and policyholder interactions directly to governed, compliant operational execution across the insurer’s core workflows. That’s where AI moves from incremental efficiency to a real end-to-end competitive advantage.”
Phoenix deputy CEO & director of innovation and technology Gil Tamir said, “The insurance industry has moved beyond experimenting with AI and is already using it in day-to-day operational workflows.
“The hard part is building systems that meet governance and reliability requirements while also improving the customer experience. Policyholders expect to handle actions on their own, get answers quickly, and communicate in natural language that understands their situation. That combination is very difficult for most companies to build internally. You need to be able to explain every decision it makes, keep it under control, and trust that it’s consistently accurate. Notch has created a system that does just that.”
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