TLDR: 1Fort, an InsurTech startup, has successfully raised $7.5 million in an oversubscribed funding round led by Bonfire Ventures, bringing its total capital to $10 million. The investment will fuel the expansion of its AI-powered platform, designed to automate and streamline business insurance workflows for brokers, addressing the significant challenge of underinsured businesses and manual processes in the industry.
New York-based InsurTech innovator 1Fort has announced the successful closure of an oversubscribed funding round, securing $7.5 million. This latest investment, spearheaded by Bonfire Ventures, elevates the company’s total capital raised to $10 million. The round also saw participation from notable investors including Draper Associates, Karim Atiyeh (founder of Ramp), and returning investors such as Village Global, Operator Partners, 8-Bit Capital, Character VC, and Company Ventures.
The newly acquired funds are earmarked to significantly enhance 1Fort’s artificial intelligence (AI) capabilities, strengthen partnerships with brokers and carriers, and scale its engineering and product teams. The company’s core mission is to modernize the business insurance landscape, which, despite its trillion-dollar market size, remains largely reliant on manual, time-consuming processes.
Anthony Marshi, Co-Founder and CEO of 1Fort, emphasized the company’s vision, stating, “Our mission is to help every business obtain the financial protection they need to keep up with today’s fast-moving risks, and empowering insurance brokers with AI to automate their antiquated workflows is the way to achieving it.” He added, “This investment will allow us to grow even faster by doubling down on our AI features and strengthening our broker and carrier partnerships. We’re grateful for our investors who share our vision in transforming business insurance.”
Currently, 70% of businesses depend on insurance brokers for coverage, yet an estimated 75% remain underinsured, leaving millions of U.S. businesses vulnerable to evolving threats like cyberattacks and supply chain disruptions. 1Fort addresses this critical gap by providing an AI-driven platform that automates various broker workflows. Its features include autofilling insurance applications, retrieving and comparing quotes from multiple A-rated carriers, integrating payment and financing options, and generating polished proposals on demand. Additionally, 1Fort offers complementary risk management software to help businesses proactively prevent claims and manage policies, aiding broker client retention.
Brokers leveraging 1Fort’s platform report substantial efficiencies, saving up to two hours per submission and increasing their bind rates by as much as 20%. This allows them to dedicate more time to client relationships and strategic advisory. Jim Andelman, Co-Founder and Managing Director of Bonfire Ventures, highlighted the market opportunity, noting, “1Fort’s solutions target a trillion-dollar market,” and that “Building AI-powered, service-as-software solutions to modernize legacy workflows in the insurance vertical is one of today’s most exciting opportunities.”
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1Fort has demonstrated robust growth, reporting nearly 200% month-over-month revenue increase in 2024. The company is licensed in all 50 states and has established partnerships with over a dozen leading carriers, including Arch, The Hartford, Markel, and Tokio Marine HCC. It serves a growing network of brokerages specializing in various coverages, including cyber, tech E&O, professional, and management liability.
