Climate risk-solving insurance provider Understory has announced the closing of its Series A funding round, securing $15 million to drive its expansion into the renewable energy sector.
This funding round, co-led by True Ventures and Prelude Ventures, will support the launch of Understory’s new product offering focused on the renewable energy sector.
This follows the launch of the company’s Dealers Open Lot insurance solution, which offers risk management for US auto dealers and has provided protection for dealer inventories across nearly 1,000 locations in the country.
Alex Kubicek, co-founder and CEO of Understory, stated: “Expanding from a tech-focused startup to a leading figure in the insurance market exemplifies our ability to scale solutions that tackle real-world problems.
“Our latest venture into renewable energy insurance underpins our commitment to rearchitecting insurance structures that support sustainable industry growth while mitigating environmental risks.”
Understory’s new product harnesses the company’s proprietary risk mitigation technology that has already reduced weather damage for its clients by over $65 million and effectively reduced overall claim trends by 60%.
This strategic move diversifies the firm’s portfolio and addresses the burgeoning demand for robust, scalable insurance solutions in sectors highly vulnerable to climatic impacts.
Puneet Agarwal, partner at True Ventures, commended the company’s growth and trajectory: “The Understory team has brought a new, next-generation level of data intelligence to the insurance market.
“This new funding round is a significant milestone, positioning Understory to reshape the property insurance industry and renewable energy landscape. We’re thrilled for the team as they continue to see so much promising traction.”
Tim Woodward, managing partner at Prelude Ventures, added: “Aligning with Understory’s venture into renewables couldn’t be more perfect for us. Their tech-driven, data-first approach to insurance is exactly what the renewable sector needs to continue its accelerated growth as we transition to a green energy future.”
