AI Startup Secures $7.5M to Revolutionize Commercial Insurance for 24M Underprotected Small Businesses in America

1Fort, a New York-based startup, has secured a $7.5 million seed funding round to revolutionize how small businesses secure commercial insurance through its AI-driven platform. With a staggering 200% month-over-month revenue growth in 2024, 1Fort is set to overhaul the outdated manual processes that have left many small businesses underinsured.

The funding round was led by Bonfire Ventures and saw contributions from Draper Associates, Ramp founder Karim Atiyeh, and existing investors such as Village Global, Operator Partners, 8-Bit Capital, Character VC, and Company Ventures. This brings 1Fort’s total funding to $10 million.

“It's frustrating to see that even though brokers manage insurance for 70% of businesses, a whopping 75% of those are underinsured,” said Anthony Marshi, 1Fort’s co-founder and CEO, in an exclusive VentureBeat interview. “Our platform automates the entire insurance placement process, cutting down weeks of manual work into a swift, hassle-free workflow that gets clients the coverage they need quickly.”

How 1Fort’s AI Slashes Insurance Paperwork from Hours to Minutes

1Fort’s AI technology is a game-changer, designed to streamline the most time-intensive parts of commercial insurance processing. Once brokers input client data, the platform takes over, auto-filling applications, fetching carrier quotes, evaluating coverage options, and handling binds and payments seamlessly.

“Imagine an autopilot for insurance submissions—that’s what 1Fort’s AI does,” Marshi explained. “It zips through the tedious parts, from filling out forms to comparing coverage options and processing payments, all at lightning speed.”

The company reports that brokers save up to two hours per submission and see a 20% increase in bind rates, which explains the platform’s rapid uptake among insurance professionals.

“Brokers love 1Fort because it delivers real results,” Marshi said. “They’re getting submissions done faster, binding more deals, and providing better coverage for their clients.”

Multi-carrier Platform Bridges Coverage Gaps Across All 50 States

1Fort has addressed the fragmented nature of commercial insurance by partnering with over a dozen top brokerages and A-rated carriers, including Arch, Tokio Marine HCC, and Markel. The platform offers comprehensive coverage across various business lines and is licensed nationwide.

Originally focused on cyber insurance, 1Fort has now expanded to include technology errors & omissions, professional liability, management liability, general liability, and workers’ compensation.

“1Fort isn’t just a one-trick pony—it’s a full-stack platform that handles everything from quoting to binding, risk management, and financing,” Marshi stated. “While some insurtechs aim to replace brokers, we’re all about empowering them and their clients at every turn.”

This broker-centric approach sets 1Fort apart from direct-to-consumer platforms, a strategy that’s gaining traction among industry experts. Travis Hedge, co-founder of Vouch, a broker for startups, praised the platform: “1Fort has been a fantastic tool for our team, speeding up our processes and enhancing the products we offer our clients.”

Why AI-Powered Insurance Tools Are Finally Gaining Traction with Brokers

The surge in 1Fort’s growth mirrors a broader industry shift towards embracing AI and automation to modernize manual processes that have long been overdue for an update.

Jim Andelman of Bonfire Ventures highlighted the potential: “Creating AI-powered, service-as-software solutions to revamp outdated insurance workflows is one of the most exciting opportunities out there.”

The U.S. commercial insurance market is a massive sector, generating billions in annual premiums, yet it's still bogged down by old-school technology and manual work.

“After years of trying out insurtech solutions that didn’t deliver, brokers are now seeing a platform that can handle complex workflows effortlessly,” Marshi noted. “In an industry full of hype, the fact that our platform just works is the ultimate validation of our approach.”

1Fort’s Ambitious Vision: Building the ‘Operating System’ for Commercial Insurance

With the new funding, 1Fort is set to boost its AI capabilities, expand its team, and forge more carrier partnerships, aiming to become the go-to AI operating system for commercial insurance.

“Our goal is to automate every part of a broker’s workflow across all major commercial lines,” Marshi said. “This way, brokers can focus on advising clients and building relationships, while our platform does the heavy lifting behind the scenes.”

The fresh capital will fuel further development to enhance the platform’s intelligence and automation. “This funding is accelerating everything we’re doing,” Marshi explained. “We’ll be pushing our AI’s automation and underwriting intelligence to new heights.”

As small businesses navigate increasingly complex risks in areas like technology, data privacy, and cybersecurity, platforms like 1Fort are poised to bridge the insurance gap. By simplifying the process for brokers, 1Fort aims to make comprehensive coverage more accessible to the millions of underinsured small businesses.

“Our ultimate aim is to make obtaining insurance as easy as a few clicks,” Marshi concluded, “with 1Fort’s AI managing the entire process seamlessly in the background.”