Nine Four Insights

Why We Re-Invested: AgentSync

We’re delighted to announce our newest follow on investment in AgentSync’s $75M Series B, led by Valor Equity Partners. Nine Four Ventures is thrilled to continue supporting Niji, Jenn, and the AgentSync team on their mission to build the future of compliance infrastructure for regulated industries. Here is a bit about the business, opportunity, and why we re-invested.

AgentSync is a compliance software management platform that allows regulated industries, starting with insurance, to monitor and track compliance at scale with a unified, end-to-end platform. Their approach is changing the compliance function from being historically reactive to proactive. Niji, Jenn, and the AgentSync team realize that the insurance industry is evolving: more “digitally native”, direct insurance companies are coming to market and proving they can acquire, service, and retain policyholders through digital channels. The velocity of growth for many of these companies is impressive, yet too often companies run into scale limitations due to their inability to manage risk and compliance. It’s hard for this critical business function to keep up, and a vicious cycle starts: more growth needs broader oversight and compliance, which leads to more risk. Before AgentSync, there were few options for startups other than to build it themselves. This created the parallel challenge of needing to scale an insurance company along with a compliance function. It’s hard. Building the back-end compliance infrastructure takes engineering and capital resources away from the rest of the business, but that was the status quo. AgentSync wants to solve these problems, and deliver ‘compliance-as-a-service’ for InsurTechs and startups in other regulated industries to scale more efficiently. AgentSync’s growth, impressive customer churn and retention numbers, and broad vision for what they can create support the notion that they’re delivering on this promise for customers.

Enabling technologies such as AgentSync allow InsurTechs to grow at rates that have made incumbents notice. As a result, incumbent insurers of all shapes and sizes are becoming more open to the idea of outsourcing select functions to new backend infrastructure technology startups so that they can benefit from them too. This has significantly expanded the total addressable market for companies like AgentSync to broader insurance industry participants including traditional agencies, MGAs and carriers. Those combined market segments are massive.

AgentSync’s opportunity extends well beyond insurance into other trillion-dollar regulated markets, including finance. The company discovered that the lines between finance and insurance can be intertwined at times. Many financial institutions have insurance subsidiaries and vice versa, and have similar needs, which makes AgentSync’s products well positioned to be cross and up-sold across hybrid organizations.

Niji and the team’s progress over the past twelve months since the Series A has been nothing short of impressive. They’re ahead of an aggressive plan, launching new products and partnerships, and discovering new use cases in new markets. Although AgentSync accomplished a lot in a short period of time, there’s still so much left to do. We’re in for an exciting next few years as the company’s rapid rate of innovation and progress carries on. If you’re an insurance agency, MGA, or carrier, and interested in learning more, please reach out. And if you’re interested in helping build the future of compliance software, AgentSync is hiring!

Congrats Niji, Jenn, and the entire team at AgentSync on this incredible milestone!

 

 

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