Spider Capital Leads Soteris’ $8M Seed for Insurance Profit AI
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Soteris has raised more than $8 million in Seed round funding led by Spider Capital. Intact Private Capital, Amplify Partners, DCVC, the Webb Investment Network and Overlook Ventures also participated.
The Y Combinator-backed company is based in Richmond. It builds machine learning tools for the property and casualty insurance industry, and on September 22, 2026, it came out of stealth for the first time with a new AI profit optimization product.
The new product is designed to help carriers and MGAs earn more, often millions more, from their existing distribution networks without changing rates, forms, filings or headcount. Soteris’s first product, which helps insurers improve loss ratios, has been live with carriers and MGAs since 2020. It has scored more than 100 million policy submissions representing more than $180 billion in premiums, and that growth came mostly from founder-led sales with no ad spend.
The problem Soteris tackles is baked into how insurance works. Insurers do not know their cost of goods sold, meaning claims losses, until well after a policy is sold. Because each policy either has a claim or it does not, results have traditionally been analyzed by grouping policies into segments, and a segment needs enough policies before actuaries consider it credible. Individual policy results end up buried in the average.
Soteris has spent more than five years building proprietary machine learning models that create huge numbers of credible segmentations at once. Where spreadsheet analysis might yield dozens or hundreds of credible views, Soteris can generate millions or billions, then use where they overlap to assess each individual policy. Implementation takes under 90 days, and insights come back in under 250 milliseconds via API at any point in the policy lifecycle.
Customers of the first product have seen loss ratios improve by 5 to 15 points within a year. In proofs of concept for the new product, insurers saw book EBITDA rise by 70% to 125%. Sunit Shah is the founder and CEO of the Virginia company.
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