Layr, an Atlanta-based insurtech startup, has raised $5 million in a Seed round led by Sandbox Insurtech. New investors Flyover Capital and Maschmeyer Group Ventures, along with existing investor Lloyd’s of London joined the round.
Layr Co-Founder and CEO Phillip Naples said the funding will primarily be used to expand the company’s AI and machine learning technology, but also for distribution and scaling the company.
“Data suggests that more than 60% of U.S.-based businesses will be owned by Gen Xers and Millennials in the next year. We’ve created an entirely new and automated process that meets the needs of modern business owners. This round of investment affirms that we’re solving a real problem and supporting economic growth by making business insurance more available, understandable, and affordable than ever before,” Naples said in a statement.
Co-Founder and serial entrepreneur Andrew Egenes said the company would concentrate on engineering and product to expand the Layr platform to support more industries and partners. Layr, which employs about 14 people, expects to have a team of 30 employees by the end of the year, Naples said.
“The bulk of the investment will be going toward scaling, engineering and product, which will facilitate broader distribution,” Egenes said.
As part of the funding, Sandbox Insurtech Ventures Managing Director Chris Zock and Flyover Capital General Partner Keith Molzer will join the company’s board of directors.