Insurtech Outmarket Raises $34.5M Series B at $355M Valuation

Outmarket has raised a $34.5 million Series B at a $355 million valuation, just four months after closing its $17 million Series A, according to a person familiar with the investment.

SignalFire led the round, with participation from Fika Ventures, Permanent Capital Ventures, TTV Capital and Dash Fund. The startup, which builds AI software that automates paperwork for insurance agencies and brokers, plans to announce the deal this week.

Founder and CEO Vishal Sankhala knows the insurance workflow problem firsthand. He led product at Ethos, a digital life insurance distributor that went public earlier this year. Before that, he worked as an engineering executive at Facebook and Uber. In late 2023, he left Ethos and launched Outmarket.

The bet rests on a simple observation about how insurance gets sold. "Ninety-five percent of insurance in the U.S. and worldwide is still sold through [human] agents, and when you look at sort of like how the process is today, it's very manual," Sankhala told TechCrunch. "This is a huge opportunity given how massive this industry is."

Outmarket focuses on commercial insurance, a segment defined by complexity. Policies require custom tailoring for each business, spanning coverage categories from general liability and workers' compensation to directors and officers (D&O) liability.

"There are over 250 different types of coverages that are out there, depending on what business you are and what risk you have and what you want to cover," Sankhala said. "For each of those, the process is very different. The application forms you need to fill out, the documents you need to read."

Outmarket's AI automates those time-consuming administrative tasks. The goal is to help brokers — organizations like Marsh and Aon that sell insurance — quickly evaluate and recommend the best policies. That frees agents for work that requires a human touch, such as responding to customers during emergencies.

The product is finding buyers quickly. Since launching a new product 14 months ago, Outmarket has signed more than 300 insurance agencies, including 25% of the top 100. "For insurance, which is typically not a fast-moving industry, it's quite fast growth," Sankhala said.

Investors have noticed the traction. The Series B values the company at $355 million, a figure that implies a sharp step up from its April-era Series A, and it lands within the same calendar year as that earlier raise — a compressed timeline even by insurtech standards.

Outmarket is not alone in building an AI operating layer for insurance brokerages. Fulcrum AI and Further AI are also chasing the same broker workflow problem. The competition reflects how quickly AI startups have moved to automate document-heavy industries that resisted earlier waves of software.

Sankhala argues the market can support multiple winners. The U.S. property and casualty insurance market alone generates more than a trillion dollars in annual premiums. If Outmarket's tools let agencies work faster and smarter, even a small efficiency gain across that base represents a substantial business.