Rainbow Shines With $12 Million in Funding

<p><strong><span class&equals;"legendSpanClass"><span class&equals;"xn-location">SAN FRANCISCO <&sol;span><&sol;span><&sol;strong>&&num;8212&semi; Rainbow&comma; a general underwriter building tailored small business insurance products&comma; has raised <span class&equals;"xn-money">&dollar;12 million<&sol;span> in seed funding with participation from Caffeinated Capital&comma; Altai Ventures&comma; Zigg Capital&comma; 8VC&comma; Buckley Ventures&comma; Habitat Partners&comma; and Arch Capital Group Ltd&period;<&sol;p>&NewLine;<p>Led by an experienced team of repeat entrepreneurs&comma; the company brings a fresh perspective to small business insurance by launching programs in specific verticals where Rainbow&&num;8217&semi;s approach to data and technology delivers an underwriting advantage&period; The company&&num;8217&semi;s flagship program&comma; an admitted business owner&&num;8217&semi;s policy &lpar;BOP&rpar; product specifically tailored to the restaurant industry&comma; is currently live in 8 states and expected to be available in over 25 states in 2024&period; Exclusively distributed through independent insurance agents and digital partners&comma; Rainbow&&num;8217&semi;s restaurant program offers producers a specialized appetite at a time when many name-brand carriers are exiting the restaurant class of business&period;<&sol;p>&NewLine;<p>&&num;8220&semi;Coming out of the pandemic&comma; we saw a gap in the process of other underwriting companies and carriers focused on small commercial&comma; and this was super clear with restaurants and their ever-evolving nature&comma;&&num;8221&semi; said Rainbow&&num;8217&semi;s CEO and co-founder <span class&equals;"xn-person">Bobby Touran<&sol;span>&period; &&num;8220&semi;Restaurants are a massive category where every operator requires insurance&comma; and it has proven to be a challenging class for many capacity providers&period; We felt that building deep domain expertise in the verticals we focus on would allow us to use technology to tailor our underwriting and prioritize loss ratio&comma; all while maintaining the critically important customer-centric approach to small business&period;&&num;8221&semi;<&sol;p>&NewLine;<p>Rainbow&&num;8217&semi;s engineering team has developed a proprietary and scalable platform for underwriting and transacting every submitted risk&period; The company&&num;8217&semi;s interwoven approach to utilizing data and technology in its underwriting creates differentiated value for both agents and insureds — rewarding policyholders that demonstrate prudent operations&comma; and streamlining placement of accounts for agents&comma; all while ensuring that the company is growing its book with a focus on loss performance&period;<&sol;p>&NewLine;<p>&&num;8220&semi;We are deeply invested in Rainbow and its world-class founding team&comma; which has accomplished so much in such a short time since inception and despite market headwinds&comma;&&num;8221&semi; said <span class&equals;"xn-person">Ray Tonsing<&sol;span>&comma; Managing Partner of Caffeinated Capital&period; &&num;8220&semi;We are extremely encouraged by the early traction of their flagship program&comma; and their exceptional platform capabilities have them poised to scale rapidly&&num;8221&semi;&period;<&sol;p>&NewLine;<p>The company&&num;8217&semi;s vision extends beyond the foodservice class&comma; with plans to launch specialized programs in additional business verticals that align with Rainbow&&num;8217&semi;s underwriting approach and vision&period;<&sol;p>&NewLine;