Foresight, a workers compensation insurtech startup, has secured $15 million in funding. The company’s backers include Brick and Mortar Ventures, Builders VC, Blackhorn Ventures and Transverse Insurance Group
SAN FRANCISCO – December 18, 2020 – Foresight, the first workers compensation insurtech to focus on the middle-market, announces a new $15 million funding round to continue expanding its tech-first risk management platform that is proven to reduce losses and lower premiums for customers. Foresight has grown quickly since launching in August of this year and has already appointed over 100 top tier brokers who have submitted over $30M in risks. The company is now on pace to reach $50M in underwritten premium in 2021.
Foresight leverages the award-winning risk management software from its sister company Safesite. The proprietary platform has been proven to reliably reduce workers comp incidents by up to 57% in a study conducted by actuarial consulting firm Perr & Knight. Safesight has been used by more than 18,000 companies around the world to digitize their safety programs and improve the capture of safety engagement data. Foresight has developed a proprietary algorithm that leverages Safesight data to predict incidents, highlight risks, and informs underwriting. By wrapping Safesite risk management technology and services into every policy, Foresight provides a path to lower incident rates and lower premiums for customers.
Foresight and Safesite were developed by longtime friends and co-founders David Fontain, Peter Grant, and Leigh Appel following a worksite accident that resulted in the death of a mutual friend.
Darren Bechtel, the Founder and Managing Director at Brick & Mortar Ventures, recalls the early days of Peter and David’s journey: “We first invested in 2016 and have known the founders since 2015 when it was just the two of them, squatting at a couple of empty desks inside another portfolio company’s office. Their initial vision was both elegant and powerful, and the demonstrated impact of their solution on safety performance, even in early interactions with the product, was impossible to ignore.”
Darren adds, “With the Safesite technology perfected and its ability to significantly reduce workers comp claims proven, expanding from a safety management SaaS platform to a full-stack app-based insurtech firm is a natural and exciting evolution of the company.”
Of the $57B national workers compensation market, Foresight focuses on policies ranging from $150K to $1M+ in annual premiums. To date, this segment has been largely overlooked by well-funded insurtech startups such as Next Insurance and Pie, which provide small business policies under $50K in annual premiums. By implementing its class-leading risk management solution, Foresight is able to differentiate itself and offer competitive rates in construction, agriculture, logistics, manufacturing, and light industrial sectors.
“Safesite delivers a new level of tech-driven safety to Foresight insureds and their brokers that is going to prevent 1,000s of injuries over the coming years,” says Peter Grant, CEO of Safesite. “Our easy-to-use safety management solution is loved by our customers. I’m thrilled we’re now rewarding their efforts with lower premiums.”
“Foresight strengthens the correlation between safety and savings while providing the fast and easy user experience insurtechs are known for,” says Foresight founder and CEO David Fontain. “We leverage purpose-built technology to drive behavioral shifts and provide an irresistible alternative to traditional workers compensation coverage.”
To date, Foresight has raised $20.5 million from industrial technology venture capital firms, led by Brick and Mortar Ventures and Builders VC, including a $15M series A round of funding in May 2020, with participation from Blackhorn Ventures and Transverse Insurance Group.
“Tracking millions of data-points and leveraging them to produce a workers compensation product that rewards customers for safety performance is a real game-changer in the $57B per year workers compensation market,” says Mark Blackwell, a Partner at Builders VC. “We’re privileged to lead this financing to help the company expand its footprint across the United States. It’s a significant opportunity to have a major impact on the mid-market workers compensation space.”
Since its launch in California and Texas in September, Foresight has rapidly expanded into additional states and added Nevada, Oklahoma, Arizona, Arkansas, Louisiana, and New Mexico. The company expects to launch workers compensation in the eastern US and a general liability line in early 2021.
Foresight insures safety-critical businesses with a technology-first workers compensation program. A rigorous third-party evaluation by leading insurance actuaries found Foresight’s proprietary risk management software improves safety engagement and reliably reduces workplace incident frequency. With fast pricing indications, online submissions, and in-app reporting, Foresight™ provides unrivaled value for brokers and businesses seeking safety and savings through technology. Learn more at getforesight.com and follow Foresight on LinkedIn.
Safesite is an award-winning safety management SaaS built to level-up safety performance for companies of all sizes and operational complexity. Trusted by over 18,000 companies worldwide, Safesite is used daily by safety pros and teams to complete safety actions in the field, ensure compliance, improve safety engagement, and drive down incident rates. With the most free features on the market, including a custom inspection builder, training template library, activity scheduling, incident reporting, and an advanced safety scorecard, Safesite makes it easy to set up, run, and scale your ideal safety program. Learn more at safesitehq.com and follow Safesite on LinkedIn.
About Builders VC
Builders VC is an early-stage venture capital firm focused on investing where technology meets new business models to modernize antiquated industries including healthcare, agriculture, industrials and real-estate. Our thesis involves applying technology and new business models to sectors where the percentage of IT spending vs. revenue is minimal. In these sectors, there exists a significant gap between what is technically possible vs. what is presently implemented. For more information on Builders VC, please visit: www.builders.vc.