Digital behavior analysis startup ForMotiv is closing a $2 million fundraising round in an effort to accelerate its growth.
The Philadelphia company works mainly with insurance carriers, tracking customer behavior throughout the insurance application process and using predictive analytics to help clients close on insurance transactions. Its proprietary platform tracks movements like keystrokes, mouse movements, backspaces and corrections to identify red flags from users.
ForMotiv's technology has gained the attention of the insurance industry. The startup closed out 2022 by adding "several top 10 insurance carriers as customers," CEO Bill Conners said, though he declined to identify them.
Conners, a Duke University alum, spent five years at Radnor-based tech firm Relay Network before joining ForMotiv as CEO when it was founded by Andrew Schwabe in 2018.
ForMotiv's technology was embedded in over a billion insurance quotes in 2022, which Conners said was about a 75% increase over the prior year. He said the company also saw an increase in revenue but wouldn't disclose specific figures.
Last year's growth, along with the validation of adding top firms to its customer base, energized the company's existing investors, who contributed the entirety of the company's latest funding round.
"We have a great existing investor pool, and they were excited about the progress we made and eager to capitalize and help the business," said Conners. ForMotiv previously raised a $6 million growth round in September 2021, which was led by Boston-based Vestigo Ventures, along with Dreamit Ventures and Plug and Play Ventures.
Conners said the new infusion of capital will help the company accelerate hiring and invest more into product development.
The Philadelphia startup, which also has offices in Ho Chi Minh City, Vietnam, now has 29 employees, more than doubling its headcount since 2021, according to Conners. While ForMotiv doesn't have a target number for new hires in 2023, he said the company will continue to invest in sales and marketing.
Conners is "really bullish" on opportunities for growth in the year ahead.
"Our goal is to continue to expand in the insurance base, expand our reach across top 100 carriers and product lines," Conners said. "We want to continue the momentum [from 2022]. We're capturing data on a billion insurance quotes annually, so we want to continue to grow that number."
