Capacity trading startup Stere closes $5m seed to expand tech-driven solutions for the insurance sector

Capacity trading startup Stere closes $5m seed to expand tech-driven solutions for the insurance sector

Published: 26-09-2022 15:42:00 | By: Pie Kamau | hits: 3022 | Tags:

Stere, a capacity trading platform specializing in capacity sourcing and unique digital capabilities for embedded insurance partners and MGAs, announced it has closed a $5 million funding round with Vida Capital. The investment allows Stere to further expand its capacity trading platform, a one-stop-shop for businesses to build and launch insurance programs with capacity partners.

Dogan Kaleli, CEO and Founder, Stere: "Vida Capital brings a tremendous amount of expertise in reinsurance, ILS and structured solutions, which supports Stere's vision of building a trading forum of all kinds of capacity in a one-stop-shop. Vida's funding will fuel further expansion of our trading platform, allowing us to continue creating the smart tech-driven solutions that our stakeholders have come to rely on to help support and grow their businesses."

Stere's capacity selection engine improves program administrators' success rate by pairing human intuition with state-of-art technology. It is a combination that eliminates manual capacity placement pain points and inefficient post-placement steps plaguing the industry that ends up cutting carrier and reinsurer scouting time by at least 50 percent. Stere also works with reinsurers to create efficiency gains by digitizing their processes and making it easier and faster to place business.

Peter Polanskyj, Head of Structured Credit, Vida Capital: "We are excited to partner with the team at Stere to take reinsurance risk transfer to the next level. We look forward to the prospect of the company offering a one-stop solution to a broad set of constituents with their capacity needs, be they traditional MGAs and brokers, insurtechs or embedded partners. As a reinsurance capacity provider and asset manager of insurance and reinsurance account assets, we see the value of the model Stere envisions for the future. Dogan and team have a great vision for the reinsurance market and we are excited about the strategic possibilities for both Stere and Vida on an ongoing basis."

Stere raised $2 million in seed funding in December 2021 from Fin VC, with participation from Plug and Play Ventures, Sandalphon Capital and Hartford Investment Management Company, among others. Stere has signed on 50+ MGAs as of early May 2022, representing more than $1.5 billion in annual premium, and helped 20+ embedded insurance partners access capacity from key carriers and reinsurers. The company recently opened a Latin America regional office that already has closed deals with 15 significant LatAm organizations, securing a contracted revenue of two million dollars.

www.stere.io