MGT, a vertically AI-native neo-insurer built to modernize commercial P&C insurance for small businesses and their agents, has closed an oversubscribed $21.6 million Series B funding round. The round was led by new investors Mubadala Capital with participation from Clocktower Ventures, Tacora Capital and existing investors.
Proceeds will support research and development, deepen vertical AI capabilities, and expand the company’s Excess & Surplus (E&S) growth initiatives nationwide.
“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,” said Michael Topol, co-founder and co-CEO of MGT. “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.”
Legacy commercial insurance processes are failing to keep up with the needs of small businesses, with a confusing, burdensome and time-consuming process to obtain coverage and service. 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’s approach introduces a new model for small business insurance with technology that truly matters,” said Ben Savage, partner at Clocktower Ventures. “We believe MGT’s AI-native platform will redefine commercial insurance and create a significant impact for brokers and businesses alike.”
“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,” Topol added. “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.”