Shepherd Raises $42 Million for AI Insurance Platform Serving Construction Boom
Shepherd, an AI-native commercial insurance platform for construction and infrastructure projects, closed a $42 million Series B round led by Intact Private Capital. The funding brings total capital raised to $67 million.
The company has issued over 1,500 policies to more than 600 customers, covering $400 billion in insured project value. Revenue has expanded more than sevenfold over the past 24 months.
Addressing Underwriting Delays
Traditional insurers typically spend weeks producing quotes for construction projects. Shepherd's platform reduces that to hours by pulling real-time data from construction software providers including Procore, Autodesk, OpenSpace, DroneDeploy, and Samsara.
The platform continuously monitors jobsite conditions, safety metrics, and operational performance rather than relying on static applications. This allows underwriters to assess risk based on actual conditions instead of paperwork alone.
Behavior-Based Pricing
Shepherd Savings, a core product feature, ties insurance pricing to contractor performance. Contractors using modern construction technology and demonstrating safer practices receive better rates over time.
The model creates a direct link between how contractors operate and what they pay for insurance-a departure from traditional carriers that price based on historical data or industry category.
Autonomous Underwriting in Development
Shepherd is building toward fully automated underwriting workflows where AI handles intake, data enrichment, risk analysis, and pricing. Human underwriters would shift from processing applications to overseeing strategy and managing exceptions.
The company targets a 10-fold improvement in underwriting capacity. Co-founder and CTO Mo Mahallawy said the goal is an underwriter overseeing 200 accounts monthly instead of 20, with AI handling routine decisions.
Customers and Coverage
Shepherd's clients include AI labs, chip manufacturers, data center operators, contractors, and energy developers building physical infrastructure. The platform offers commercial property and casualty insurance, general liability, commercial auto, builder's risk coverage, and renewable energy policies.
Shepherd operates as a managing general underwriter, maintaining in-house underwriting authority while partnering with larger carriers for capacity. Intact Financial Corporation, which led the Series B, is also becoming a capacity partner.
Spark Capital and Costanoa Ventures also participated in the round.
Learn more: AI for Insurance and AI for Real Estate & Construction
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