Stand Raises $70M to Expand Resilient Home Insurance

The big picture: Stand, a property insurance technology company focused on homes exposed to natural disasters, has raised $70 million in Series C funding at a $1 billion valuation to expand its risk modeling, home resilience, and insurance operations.

Why it matters:

• Addressing Market Gaps: Increasing losses from natural disasters have made affordable and reliable property insurance challenging for homeowners in catastrophe-prone regions.
• Incentivizing Resilience: Stand’s model connects physical risk reduction with insurance affordability, rewarding homeowners for making properties more resilient.
• Shifting Underwriting Paradigms: The investment signals a growing industry interest in physics-based risk assessment and property-level simulations over traditional historical loss data for underwriting.

How it works:

• Proprietary Risk Modeling: Stand utilizes its ‘Stand World Model’ to create digital representations of properties and simulate their exposure to hazards like wildfire and wind.
• Personalized Improvements: The system identifies home vulnerabilities and recommends specific modifications to improve resilience, aiming to preserve existing design and character.
• Integrated Insurance: Stand uses its property resilience assessments to inform underwriting and pricing, offering qualifying homeowners premium discounts of up to 70% for verified improvements.

The catch: While Stand’s approach offers a novel solution, scaling a model that requires detailed property-level assessments and verification of improvements is operationally intensive. The company also operates in a highly regulated and competitive insurance market, requiring significant capital and robust reinsurance partnerships to manage risk and expand into new states.

Key Facts

• Company: Stand
• Amount: $70M
• Round: Series C
• Investors: Saga Ventures (lead), Lowercarbon, Eclipse, Equal Ventures, Inspired Capital, Neotribe, Jackson Square Ventures
• Founder: Dan Preston
• Valuation: $1,000,000,000
• Sector: Property Insurance Technology