The Demex Group, a D.C. startup using data and analytics to mitigate risks for insurance providers grappling with severe weather-related claims, has raised $10.25 million in funding to scale its business.
Congruent Ventures, an early-stage venture capital firm based in San Francisco, led the Series A round. Other investors included San Francisco's Moxxie Ventures, New York's MetaProp and existing Los Angeles-based investor Blue Bear Capital.
As severe weather storms like tornados and thunderstorms become more common amid climate change, Demex aims to lower the risk that home insurance providers and others face when it comes to paying out weather-related claims.
By partnering with reinsurance brokers and companies, Demex assumes insurance coverage for these insurance providers above a certain threshold, a figure that's established using various technical models shaped by historical weather patterns and other metrics found in a geographic area.
It's estimated that natural disasters caused about $62 billion of insured losses in the first half of this year, according to a report from Bloomberg. That's about 70% higher than the 10-year average.
Demex, led by President and CEO Bill Clark, could not be reached for additional comment.
According to figures on LinkedIn, Demex employs about 20 workers. The company, founded in 2020, closed on a $5 million funding round in August 2023.
