Atlanta startup Axle, which uses artificial intelligence and automation to streamline insurance verification, raised $4 million in seed funding.
About the round: Gradient Ventures, an AI-focused firm launched by Google in 2017, led the round. Y Combinator, a well-known accelerator program that helped successful startups such as Stripe and Instacart, also invested. Soma Capital, Contrary Capital, Rebel Fund, BLH Ventures and angel investors participated in the round.
Axle’s growth: The startup launched less than a year ago and says it has grown its network to hundreds of insurance carriers. It was founded by chief technology officer Nihar Parikh, CEO Cameron Duncan and chief operating officer Armaan Sikand.
Details on Axle: Axle is an API software that allows companies to instantly verify insurance, monitor coverage and provide real-time access to data.
Why it matters: Venture capital funding has constricted for startups in Atlanta and nationwide amid high interest rates and inflation as well as fears of a recession. Insurance tech has typically been a popular industry among investors, though that has changed amid the current economic conditions, according to McKinsey & Co.
What they’re saying: “Our mission is bridging the gap between insurance and the parallel industries like auto lending, home and mortgages,” Duncan told TechCrunch.
What’s next: The startup plans to use the investments to grow its team and customer base.
