NYC-based insurtech startup Dayforward announced Monday that it raised $25 million in venture funding and closed an acquisition that will help the company expand nationwide.
Dayforward offers term life insurance that guarantees the policyholder’s family will continue to receive the policyholder’s most recent salary until their children are financially dependent, which depending on the plan, can range from age 18 to 26.
Founded in 2020, Dayforward has operated in three states for the past two years. The company expanded its footprint by acquiring Commercial Travelers Life Insurance Company for an undisclosed amount from National Guardian Life Insurance Company.
Commercial Travelers is licensed to operate in 45 states. Dayforward is currently able to operate in 38 of those states, and it is working toward clearing regulatory hurdles in the seven remaining states. Dayforward founder and CEO Aaron Shapiro said the company plans to be operating in all 50 states by the end of this year.
Before founding Dayforward, Shapiro founded Huge, a digital transformation consultancy acquired by the Interpublic Group, and Silverpop, a marketing automation software company that was sold to IBM. Dayforward Head of Product Matthew Wolf was previously head of product and analytics at Haven Life, an insurance startup owned by MassMutual.
With Dayforward, Shapiro said his team developed an online automated underwriting system that allows customers to be approved within 15 minutes of submitting an application, compared to the four to six weeks required by legacy insurance carriers. The policy can also be changed without any additional underwriting, Shapiro said.
The $25 million funding round was led by AXA Venture Partners and joined by HSCM Ventures, Juxtapose and Munich Re Ventures. Dayforward, which has raised a total of $45 million so far, will use its latest injection of capital to scale nationally and develop new insurance products.
“Dayforward is a product-first, tech-enabled life insurance startup that now has the ability to distribute through multiple channels — direct, agent and partner — almost nationally,” Vikas Singhal, founding partner of HSCM Ventures, said in a statement. “As a full-stack insurance company with a focus on automated underwriting and a streamlined front-end, Dayforward is positioned to innovate across core areas of the industry and seeks to bring customized products to the market that fit specific customer needs.”
