AI-native insurer MGT closes $21.6m Series B funding round

MGT, a vertically AI-native neo-insurer, has closed an oversubscribed $21.6 million Series B funding round led by new investor Mubadala Capital, with participation from Clocktower Ventures, Tacora Capital, and existing backers.

The company said the new capital will support its mission to modernise commercial property and casualty (P&C) insurance and deliver smarter, faster, and more accessible coverage for small businesses across the United States.

The proceeds will reportedly support research and development, deepen the firm’s vertical AI capabilities, and expand its Excess & Surplus (E&S) growth initiatives nationwide.

“While the core principles of insurance remain unchanged, the future of insurance operations and scaling will be built around AI. As the world’s first AI neo-insurer tailored to the insurance needs of small business and their agents, MGT is re-architecting the model to deliver simplicity, speed and transparency,” MGT explained.

Michael Topol, Co-Founder and Co-CEO of MGT, commented, “This raise marks a pivotal moment for MGT as we scale to meet the growing needs of agents and small businesses nationwide with the support of investors aligned with our mission.

“By building MGT as a vertically AI-native company from the ground up, we’ve proven that automation and AI can drive meaningful efficiency, scaling quickly with limited headcount and focusing on strategic impact and innovation.”

Graham Topol, Co-Founder and Co-CEO of MGT, added, “At MGT, we see insurance as the unsung hero of the American economy, enabling entrepreneurs to take risks and pursue new opportunities. We provide the financial protection that empowers small businesses to grow and innovate.

“I couldn’t be prouder of the team and what we’re building together. Our growth over the last two years is a testament to what can be accomplished when you combine exceptional people with modern technology. Overall, we are proving you can change an industry faster than anyone thought possible.”

Ben Savage, partner at Clocktower Ventures, said, “MGT’s approach introduces a new model for small business insurance with technology that truly matters.

“We believe MGT’s AI-native platform will redefine commercial insurance and create a significant impact for brokers and businesses alike.”