Cape Analytics Raises $17M Series B to Bring its AI-Driven Property Intelligence Solution to More U.S. Insurers
Today, Cape Analytics, the provider of the most accurate and up-to-date property data for insurers and reinsurers, is announcing it has raised $17M in new financing, led by XL Innovate, an insurance technology-focused venture fund. The round also includes backing from innovative insurance customers and partners, including The Hartford, Nephila, CSAA Insurance Group (a AAA insurer), The Cincinnati Insurance Company, and State Auto Labs Fund. These insurers join existing technology investors from current or prior rounds, including Formation 8, Data Collective, Khosla Ventures, Montage Ventures, Lux Capital, and Promus Ventures. As part of the financing round, XL Innovate Partner, Martha Notaras, will join the company’s Board of Directors.
Today, trillions of dollars are tied to real estate assets, but property-related financial decisions are often based on inaccurate or out-of-date information. Cape Analytics has used computer vision and machine learning to turn current geospatial imagery into the world’s most accurate structured database of property information in the United States. This data includes critical information such as building footprints, roof condition, and nearby hazards. With Cape Analytics, insurers can access data on over 70 million buildings across the country in milliseconds, allowing them to instantly pull property information at the time of quote, choose better risks, and price policies more accurately. Data from Cape Analytics also accelerates the home insurance application process for consumers, powering accurate online quotes with fewer time-consuming questions.
The fresh round of funding will be used by Cape Analytics to expand its sales and AI-centric product development teams as it responds to rapid growth in customer interest and adoption. In the future, the company will also look at expanding its footprint to new geographies and other applications within the insurance vertical, where significant opportunity exists to improve data quality being used by insurers to make critical decisions about their business.
“I’ve seen a number of large-scale business success stories that were contingent on strategic inflection points within the insurance industry. Cape Analytics is presaging the next major shift in insurance, towards the use of AI and real-time analytics,” said Martha Notaras, Partner at XL Innovate and Cape Analytics Board Director. “I have observed over the last two years as Cape Analytics has delivered on their product vision and made a tangible impact on their customers’ bottom line. We are thrilled that XL Innovate has the opportunity to lead this financing and help Cape Analytics scale further.”
“When we evaluate venture opportunities at The Hartford, we look for companies with distinctive capabilities, a forward-thinking, execution-focused management team, and the ability to add meaningful value to our core businesses,” said John Wilcox, Chief Strategy and Ventures Officer at The Hartford. “Cape Analytics checks all of these boxes, and we are excited to be an investor and partner of theirs.”
“We had the privilege to choose the entities that invested in this round of funding. As such, we have deliberately prioritized forward-thinking customers who provide critical product insight and reflect our customer-driven philosophy,” said Ryan Kottenstette, CEO and Co-Founder of Cape Analytics. “This funding also recognizes our leadership in the residential property intelligence space as the only provider of accurate, instant, and up-to-date property data.”
In less than 12 months, Cape Analytics has seen tremendous growth, expanding its coverage from Florida alone to nearly every single-family home in the country. The company has also expanded the breadth of its offering with data on additional features critical to assessing risk including presence, shape, and condition of building and parcel characteristics. Finally, Cape Analytics has partnered with leading insurance software providers, such as Duck Creek, and tripled headcount since the last financing round.