Shepherd, an AI-native insurance platform, has secured $42 million in a Series B funding round led by Intact Private Capital. This investment brings the company's total funding to $67 million and is aimed at modernizing insurance for the construction industry. The capital will fuel Shepherd's expansion as it addresses the unique demands of the rapidly growing AI infrastructure sector.
A Modern Solution for a Legacy Industry
The commercial construction industry is experiencing a historic boom, driven largely by the need for data centers and renewable energy projects. However, the traditional insurance sector has struggled to keep pace, often relying on slow, manual underwriting processes. This friction creates significant delays for contractors and developers working on time-sensitive, multi-billion dollar infrastructure builds.
Shepherd directly confronts this challenge with its proprietary AI platform, which dramatically accelerates the underwriting timeline. The system can process complex submission documents and deliver an initial quote in minutes, a task that typically takes legacy carriers weeks. This speed is achieved by structuring unstructured data and integrating real-time project information for faster, more accurate analysis.
Data-Driven, Behavior-Based Pricing
The company is pioneering a behavior-based pricing model, drawing parallels to telematics in auto insurance. By integrating with construction technology platforms like Procore and Autodesk, Shepherd accesses real-time jobsite data. This allows for a dynamic risk assessment based on actual operational practices rather than static, outdated application information.
Through its Shepherd Savings program, the company rewards contractors who demonstrate a commitment to safety and operational excellence. Clients who utilize partnered construction technologies can receive differentiated pricing that reflects their lower risk profile. This creates a powerful incentive for builders to invest in safer, more efficient construction methods and technologies.
Strategic Backing and Ambitious Roadmap
The Series B round was notably led by Intact Private Capital, the venture arm of one of the world's largest commercial insurers. This backing serves as a powerful industry validation of Shepherd's technology and business model. Intact's involvement extends beyond capital, as it will also act as a long-term capacity partner for the company.
With the new funding, Shepherd plans to pursue what it calls "autonomous underwriting," aiming to increase an underwriter's efficiency tenfold. The vision involves AI handling the entire workflow from intake to pricing, allowing human underwriters to orchestrate portfolios and manage exceptions. This ambitious roadmap seeks to fundamentally reshape the role of the underwriter within the next two years.
The company has already demonstrated significant traction, having grown its revenue sevenfold over the past 24 months. It has issued over 1,500 policies and insured more than $400 billion in project value for over 600 customers. These clients include leading AI labs, chip manufacturers, and the contractors building the physical foundation of the AI economy.
Shepherd's successful $42 million funding round positions it to capitalize on the generational AI infrastructure buildout. By combining advanced AI with a data-centric approach, the company is solving critical efficiency problems in commercial insurance. This strategic investment from an industry leader underscores the market's confidence in Shepherd's vision to become the definitive insurer for the modern construction era.