Kettle Cooks Up $25 Million Series A

<p><strong><span class&equals;"xn-location">SAN FRANCISCO<&sol;span><&sol;strong> &&num;8212&semi; <u>Kettle<&sol;u>&comma; a reinsurance startup that uses advanced deep learning to better protect people from the growing risks associated with climate change&comma; has raised a &dollar;25 million Series A funding round led by Acrew Capital&comma; with participation from Homebrew&comma; True Ventures&comma; Anthemis&comma; Valor&comma; DCVC&comma; and LowerCarbon Capital&period;<&sol;p>&NewLine;<div class&equals;"col-sm-10 col-sm-offset-1">&NewLine;<p>Kettle is bringing advanced technology to the <span class&equals;"xn-money">&dollar;400 billion<&sol;span>-a-year reinsurance industry&comma; starting with <span class&equals;"xn-location">California<&sol;span> wildfires&period; &lpar;<strong>Photo above&colon; <&sol;strong>Kettle Risk Map&rpar; The industry has seen a 68 percent drop in return on equity due to a 3X increase in catastrophes causing more than <span class&equals;"xn-money">&dollar;1 billion<&sol;span> in damage over the past 15 years according to NOAA&period; In 2021 we saw the Dixie and Caldor Fires in <span class&equals;"xn-location">California<&sol;span> burn over 700&comma;000 acres and destroy over 1200 structures based on Calfire&&num;8217&semi;s data&period;<&sol;p>&NewLine;<&sol;div>&NewLine;<div class&equals;"col-sm-10 col-sm-offset-1">&NewLine;<p>Founded by <span class&equals;"xn-person">Andrew Engler<&sol;span> and <span class&equals;"xn-person">Nathaniel Manning<&sol;span>&comma; Kettle is structured as a reinsurance Managing General Agent that can underwrite these increasing risks&period; Kettle is also setting up their own risk-bearing entity&period; Kettle&&num;8217&semi;s Engler has more than a decade of experience working in the insurance and reinsurance industries&comma; most recently as the vice president of digital at the public insurer&sol;reinsurer&comma; Argo Group&period; Manning spent years working with data for humanitarian efforts as the CEO of Ushahidi&comma; the largest open source software platform for community crisis response&comma; and as the first chief data officer of USAID&period;<&sol;p>&NewLine;<p>&&num;8220&semi;We are thrilled to be helping provide insight and relief to the <span class&equals;"xn-location">California<&sol;span> insurance market&comma;&&num;8221&semi; said Manning&period;<&sol;p>&NewLine;<p>&&num;8220&semi;There are 14 million structures in <span class&equals;"xn-location">California<&sol;span>&comma; and in 2020 ~11&comma;500 of them burned down&comma; less than &period;1&percnt;&period; While the risks of wildfire have certainly increased over the past decade&comma; the key is understanding exactly where the risk is&period; If we can do that&comma; we can bring stability back to the <span class&equals;"xn-location">California<&sol;span> insurance market&period;&&num;8221&semi;<&sol;p>&NewLine;<p>In 2020&comma; Kettle&&num;8217&semi;s model predicted that the fourteen largest fires&comma; which accounted for 98&percnt; of the damage&comma; were in the top 20 percent of areas most likely to burn across <span class&equals;"xn-location">California&&num;8217&semi;s<&sol;span> hundred plus million acres&period; In 2021&comma; Kettle&&num;8217&semi;s model predicted the areas consumed by the Dixie and Caldor Fires as some of the most dangerous parts of <span class&equals;"xn-location">California<&sol;span>&period;<&sol;p>&NewLine;<p>Kettle&&num;8217&semi;s technology and proprietary algorithms use terabytes of data from public and private data sources&comma; such as NOAA weather data and NASA&&num;8217&semi;s MODIS and LIDAR satellites&period; Kettle&&num;8217&semi;s neural networks run upward of 140 million model parameters to calculate probabilities of fire damage at the half square mile resolution across the state&period;<&sol;p>&NewLine;<p>&&num;8220&semi;When you take a minute to think about it&comma; it becomes very obvious why traditional reinsurers can&&num;8217&semi;t accurately underwrite climate risk &&num;8212&semi; their methodologies  look to the past&comma;&&num;8221&semi; says <span class&equals;"xn-person">Lauren Kolodny<&sol;span>&comma; Partner at Acrew Capital&period; &&num;8220&semi;And our climate is changing in ways that can&&num;8217&semi;t be predicted on the basis of historical data&period; Kettle is solving a massive&comma; global problem&period; And we&&num;8217&semi;re so thrilled to deepen our partnership with this incredible team&period;&&num;8221&semi;<&sol;p>&NewLine;<&sol;div>&NewLine;

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