AI Neo-Insurer MGT Closes $21.6M Oversubscribed Series B to Redefine Commercial P&C Insurance for Small Businesses

Business Wire

Funding will accelerate innovation and growth of the world’s first vertically AI-native neo-insurer

SAN FRANCISCO--(BUSINESS WIRE)--
MGT, a vertically AI-native neo-insurer built to modernize commercial P&C insurance for small businesses and their agents, today announced it has closed an oversubscribed $21.6 million Series B funding round. The round was led by new investors Mubadala Capital with participation from Clocktower Ventures, Tacora Capital and existing investors.

This new funding will fuel MGT’s mission to deliver smarter, faster, and more accessible insurance coverage for small businesses across the U.S. Proceeds will support research and development, deepen vertical AI capabilities, and expand the company’s Excess & Surplus (E&S) growth initiatives nationwide.

“This raise marks a pivotal moment for MGT as we scale to meet the growing needs of agents and small businesses nationwide with the support of investors aligned with our mission,” said Michael Topol, Co-Founder and Co-CEO of MGT. “By building MGT as a vertically AI-native company from the ground up, we’ve proven that automation and AI can drive meaningful efficiency, scaling quickly with limited headcount and focusing on strategic impact and innovation.”

Legacy commercial insurance processes are failing to keep up with the needs of small businesses, with a confusing, burdensome and time-consuming process to obtain coverage and service. While the core principles of insurance remain unchanged, the future of insurance operations and scaling will be built around AI. As the world’s first AI neo-insurer tailored to the insurance needs of small business and their agents, MGT is re-architecting the model to deliver simplicity, speed and transparency.

“MGT’s approach introduces a new model for small business insurance with technology that truly matters,” said Ben Savage, partner at Clocktower Ventures. “We believe MGT’s AI-native platform will redefine commercial insurance and create a significant impact for brokers and businesses alike.”

MGT’s combination of deep expertise and proprietary AI has enabled it to scale to serve nearly 30,000 customers, quadrupling its growth and achieving profitability before its second anniversary. This success was achieved with remarkable efficiency, delivering $3 million in annual recurring revenue per employee.

“At MGT, we see insurance as the unsung hero of the American economy, enabling entrepreneurs to take risks and pursue new opportunities. We provide the financial protection that empowers small businesses to grow and innovate,” said Graham Topol, Co-Founder and Co-CEO of MGT. “I couldn’t be prouder of the team and what we’re building together. Our growth over the last two years is a testament to what can be accomplished when you combine exceptional people with modern technology. Overall, we are proving you can change an industry faster than anyone thought possible.”

To learn more about MGT and to follow along for more company updates, visit mgtinsurance.com.

About MGT

MGT is a vertical AI neo-insurer designed to modernize commercial P&C insurance for small businesses and their agents. By leveraging a full-stack model that integrates data and technology, MGT is improving the entire insurance buying process from data to policy, streamlining what used to be a weeks-long process into a matter of minutes. MGT supports small businesses navigating insurance by addressing their biggest challenges with the expertise and forward-thinking that define the industry. MGT Insurance is an “A-” AM Best rated carrier with a national presence in both admitted and E&S markets. For more information about MGT, please visit mgtinsurance.com.