Rainbow Secures $8 Million Series A Funding to Expand Small Business Insurance Offerings
SAN FRANCISCO–Rainbow, a digitally-enabled managing general underwriter (MGU) specializing in tailored small business insurance products, has announced raising $8 million in Series A funding led by Zigg Capital. The financing, which closed in Q4 2024, will accelerate the company’s plans to expand its specialized underwriting approach to additional business verticals.
Rainbow’s initial product, an admitted business owner’s policy (BOP) designed specifically for the restaurant industry, is currently live in 24 states and will expand to additional states, including New York, in the coming months. The company’s platform provides agents and brokers with a seamless quote-to-bind experience while rewarding policyholders for prudent operational practices.
“We’re thrilled to be deepening our partnership with Zigg, a firm that shares our vision for a differentiated approach to profitable insurance underwriting,” said Bobby Touran, CEO and Co-founder of Rainbow. “This new capital will allow us to accelerate our expansion into additional verticals in service of growing demand from our agent and distribution partners.”
Rainbow’s technology platform features a proprietary “continuous underwriting” framework that enables real-time portfolio assessment, improving underwriting accuracy and decreasing loss ratios. The company’s growth has been exceptional, with its total capital raised reaching $20 million since its formation in 2022.
“Rainbow has built the most compelling technology platform to serve the restaurant vertical and the SME sector,” said Ryan Orley, General Partner of Zigg Capital. “The team at Rainbow exemplifies the profile Zigg seeks to back – efficient, fast-moving, domain experts, and customer-centric.”
About Rainbow
Founded in 2022, Rainbow is a specialty managing general underwriter that designs and delivers small business insurance products with a focus on vertical specialization. The company’s flagship product for the restaurant industry is distributed exclusively through independent insurance agents and digital partners.
