Stand has raised $70 million in Series C funding at a $1 billion valuation to build a homeowners insurance business that uses physics-based models to assess natural disaster risk.
Saga Ventures led the round, with participation from Lowercarbon, Eclipse, Equal Ventures, Inspired Capital, Neotribe and Jackson Square Ventures. The San Francisco company, founded by former Metromile CEO Dan Preston, has now raised $130 million.
Traditional home insurance relies heavily on historical claims, geographic risk categories and broad statistical models. Stand takes a different approach, using detailed simulations of individual properties to assess how homes might withstand wildfires and hurricanes. Its technology can identify specific changes, such as removing vegetation near a house, that could reduce the likelihood of damage and potentially lower insurance premiums.
Stand says it now insures more than $10 billion worth of property, compared with $1 billion a year earlier. The company currently operates in California and Florida, where insurers have struggled with the growing cost of natural disasters.
Its next challenge is demonstrating that more precise risk assessments and preventative measures can produce lower claims over time, allowing the company to offer sustainable coverage in markets where traditional insurers have been retreating.