Underlines shift from legacy “Old Core” to AI-native insurance software

SAN FRANCISCO–(BUSINESS WIRE)–Federato, the AI-native platform that changes the way insurance work gets done, today announced it has raised $100 million in Series D funding led by Growth Equity at Goldman Sachs Alternatives, with participation from returning investors Emergence Capital, Caffeinated Capital, StepStone Group, and Pear VC.

This latest capital infusion reinforces a major shift in insurer sentiment away from an old core of legacy systems and towards a generation of software in tune with the AI transformation surrounding all of us.

“Our diligence in P&C insurance revealed that Federato’s AI-native platform delivers a step change in ROI and efficiency compared to prior generations of core systems,” said Jade Mandel, Managing Director at Growth Equity at Goldman Sachs Alternatives. “Federato has built the full policy lifecycle solution the market has been waiting for, and we’re excited to invest in a company whose domain and AI expertise are already delivering measurable results for insurers.”

“Executives use AI every day and have an intuitive understanding of what it should deliver. But they aren’t getting that from AI bolted on to legacy solutions,” said Will Ross, Co-Founder and CEO of Federato. “The rising demand for true AI-native capability has surprised even us, and this substantial new investment from Goldman Sachs will help us deliver what customers need.”

The company has tripled its revenues in the last year, driven by a combination of new logo growth and significant client expansion since its $40M Series C raise less than twelve months ago. This growth has been underpinned by the mainstream adoption of agentic AI, a technology approach that Federato co-founders Will Ross and William Steenbergen have been leaders in for over a decade.

“As compelling as Federato’s agentic AI platform is from a distance, we’ve been even more impressed by the time to value we’ve observed. We’re proud to partner with a team that can match the pace at which we’re growing,” said Michael Waller, VP Technology Business Operations, Mission.

Leading insurers are choosing Federato as a platform on which they can shape their approach to how insurance works in an AI world. They can customize their instance to align to their strategy and workflows. The result is transformative: AI conducts complex analyses with depth and rigor, freeing up human capital to focus on the nuances and relationships that only they understand.

“Our vision of the future is underwriters grounded in underwriting excellence, amplified by seamlessly integrated tools that drive efficiency and superior risk outcomes at every step,” said Elizabeth Johnson, Chief Operating Officer, Ascot. “Our partnership with Federato is vital to this commitment.”

Federato has now raised over $180 million with this latest round focused on continued product innovation and global expansion to meet rising demand.

To learn more, visit https://www.federato.ai/.

About Federato
Federato is the only AI-native platform that spans the full policy lifecycle, changing the way insurance work gets done. Its proven agentic AI conducts complex analyses with depth and rigor, freeing up insurer’s human capital to focus on nuanced decisions and relationships. Federato is the independent alternative to legacy systems and provides better business outcomes with capabilities that are built-in to insurers’ workflows, not bolted on.

Learn more at federato.ai.

About Growth Equity at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors, and individuals. Goldman Sachs has approximately $3.5 trillion in assets under supervision globally as of September 30, 2025.

Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth-stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare.

Contacts

Media:
For Federato
Tisha Schmitz
federato@calibercorporateadvisers.com

For Goldman Sachs
Victoria Zarella
press@gs.com

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