TLDR: AI-powered InsurTech firm Stitch Studio has successfully closed a $3 million seed funding round led by ManchesterStory. The investment will accelerate the company’s go-to-market strategy and enhance its specialized AI platform designed to automate critical workflows for insurance carriers, brokers, and managing general agents.
Portland, Oregon-based InsurTech innovator Stitch Studio announced on July 11, 2025, the successful completion of a $3 million seed funding round. The investment was spearheaded by ManchesterStory, with additional participation from BrokerTech Fund, marking a significant milestone for the company founded in 2024.
Stitch Studio specializes in developing purpose-built AI agents for the insurance sector. Its proprietary AI Studio platform empowers insurance stakeholders, including carriers, brokers, and managing general agents (MGAs), to automate high-friction workflows across various operational areas such as underwriting, claims processing, and general operations. The company emphasizes providing insurance-specific AI agents that offer out-of-the-box functionality while ensuring full control, compliance, explainability, and trustworthiness for its users.
The newly secured capital is earmarked to accelerate Stitch Studio’s market entry, deepen its AI capabilities specifically tailored for the insurance industry, and expand the adoption of its innovative platform among a broader range of insurance professionals.
Santoash Rajaram, founder of Stitch Studio, commented on the funding, stating, “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.”
Matt Kinley, Founding Partner at ManchesterStory, expressed his firm’s enthusiasm for the partnership: “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.”
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This funding round comes amidst a notable rebound in venture capital funding for InsurTech companies in 2025, with global investment surging over 65 percent in the first quarter alone, according to a report from Pitchbook. Stitch Studio’s latest investment follows an earlier $50,000 seed round on April 1, 2025, bringing its total funding to $3.05 million.
