MGT, a vertically AI-native neo-insurer based in San Francisco, announced the close of a $21.6 million oversubscribed Series B funding round aimed at redefining commercial property and casualty (P&C) insurance for small businesses and their agents. The round was led by new investor Mubadala Capital, with participation from Clocktower Ventures, Tacora Capital, and existing investors.
Funding to Accelerate Innovation and Growth
The newly raised capital will support MGT’s mission to deliver smarter, faster, and more accessible insurance coverage for small businesses across the United States. The company plans to use the proceeds to advance research and development, strengthen its vertical AI capabilities, and expand its Excess & Surplus (E&S) market initiatives nationwide.
“This raise marks a pivotal moment for MGT as we scale to meet the growing needs of agents and small businesses nationwide with the support of investors aligned with our mission,” said Michael Topol, Co-Founder and Co-CEO of MGT. “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.”
Addressing Gaps in Legacy Insurance Processes
Traditional commercial insurance systems often present small businesses with a confusing and time-consuming process to obtain and manage coverage. MGT was founded to streamline these challenges using artificial intelligence. As the world’s first vertically AI-native neo-insurer focused on small businesses, the company is restructuring the insurance model to prioritize simplicity, speed, and transparency.
“MGT’s approach introduces a new model for small business insurance with technology that truly matters,” said Ben Savage, Partner at Clocktower Ventures. “We believe MGT’s AI-native platform will redefine commercial insurance and create a significant impact for brokers and businesses alike.”
Proven Growth and Operational Efficiency
Since its founding, MGT has scaled to serve nearly 30,000 customers, quadrupling its growth and achieving profitability before its second anniversary. The company reports $3 million in annual recurring revenue per employee—demonstrating a high level of operational efficiency supported by its proprietary AI systems.
“At MGT, we see insurance as the unsung hero of the American economy, enabling entrepreneurs to take risks and pursue new opportunities,” said Graham Topol, Co-Founder and Co-CEO of MGT. “We provide the financial protection that empowers small businesses to grow and innovate. Our growth over the last two years is a testament to what can be accomplished when you combine exceptional people with modern technology. Overall, we are proving you can change an industry faster than anyone thought possible.”
About MGT
MGT is a vertical AI neo-insurer designed to modernize commercial P&C insurance for small businesses and their agents. Through a full-stack model that integrates data and technology, MGT streamlines the insurance process—from data collection to policy issuance—reducing what once took weeks to just minutes. The company serves both admitted and E&S markets nationwide and holds an “A-” financial strength rating from AM Best.
For more information, visit mgtinsurance.com.
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