MGT, an AI-first commercial insurer targeting small businesses, closed a $21.6 mn Series B that was oversubscribed. Mubadala Capital led the round, with Clocktower Ventures, Tacora Capital, and existing investors also in.
The company plans to channel the cash into research, deeper AI capability, and scaling its Excess & Surplus operations across the US.
The startup runs on a full-stack model. Underwriting, distribution, policy delivery – all handled in an AI-native framework built from scratch.
That design means speed and scale without piling on staff. It also strips out friction for agents and small businesses who normally wrestle with paperwork and long waits for quotes.
Michael Topol, MGT’s co-founder and co-CEO, called the raise a defining moment. He said the company has already shown that automation and vertical AI can deliver efficiency at scale with a lean team, freeing resources to focus on strategic expansion and product innovation.
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
Michael Topol, MGT’s co-founder and co-CEO
Ben Savage, Clocktower Ventures partner, said the model introduces something genuinely new to small business insurance.
In his view, MGT’s technology has the potential to reset how brokers and businesses think about commercial P&C coverage, not as an outdated service but as something faster, smarter, and relevant.
MGT’s approach introduces a new model for small business insurance with technology that truly matters. We believe MGT’s AI-native platform will redefine commercial insurance and create a significant impact for brokers and businesses alike.
Ben Savage, Clocktower Ventures partner
The bet here is bold: vertical AI stitched directly into the fabric of insurance, not bolted on later. Investors clearly think it’s worth the ride.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.