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Corporate Venture
amfamventures.com

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Investments

78

Portfolio Exits

11

Funds

2

About American Family Ventures

American Family Ventures is the corporate VC arm of American Family Insurance. American Family's pioneering attitude and decades of success allow the firm the opportunity to invest in seed through growth stage companies. Its initial investments typically range from $500k to $2M. American Family Ventures aims to help create category-leading companies that can impact its business and the insurance industry as a whole.

American Family Ventures Headquarter Location

812 E Washington Avenue

Madison, Wisconsin, 53783,

United States

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Expert Collections containing American Family Ventures

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Find American Family Ventures in 2 Expert Collections, including Fortune 500 Investor list.

F

Fortune 500 Investor list

590 items

This is a collection of investors named in the 2019 Fortune 500 list of companies. All CB Insights profiles for active investment arms of a Fortune 500 company are included.

I

Insurtech

26 items

2020 Top 25 US P&C Insurers based on Gross Written Premiums in 2019, per NAIC

Latest American Family Ventures News

Branch snags $147M at a $1.05B valuation, showing that thorny insurtech market not impervious to growth

Jun 8, 2022

Branch , a startup offering bundled home and auto insurance, has raised $147 million in Series C funding at a postmoney valuation of $1.05 billion. Weatherford Capital, a family-owned private investment firm, led the round, which also included participation from existing and new backers such as Acrew, American Family Ventures, Anthemis, Gaingels, Greycroft, HSCM Ventures, Narya, SignalFire and Tower IV. With this latest financing, Columbus, Ohio–based Branch has raised $229.5 million in total funding since its 2017 inception. Branch, according to co-founder and CEO Steve Lekas, is the only insurance company that he is aware of that can bind insurance through an API, and the only one that can bundle auto and home insurance in a single transaction. Another way Branch is unique, he adds, is that it can be embedded into the buying experience. In other words, the company has partnered with mortgage or security system providers to integrate insurance at the point of sale in their products. For example, if a person is closing on a home, they have the option of purchasing Branch insurance at the same time. Partners include Homepoint, OpenRoad Lending and SimpliSafe, among others. This distribution model means that Branch shells out less to acquire customers and thus, it claims, is able to offer premiums for a lower price than competitors. But the startup also offers its insurance direct-to-consumer and through agencies. The company has seen impressive growth. While Lekas declined to reveal hard revenue figures, he did say that Branch has grown its annualized written premium by 1,300% in the last 12 months. Since announcing its $50 million raise almost exactly 1 year ago, the startup has also increased its head count from around 75 employees to just over 400 today. The company plans to use its new capital in part to accelerate its rollout across the U.S. It is currently in 28 states, having expanded into nine new ones this year. “The thing that Branch does differently is charge an appropriate amount to cover the costs of running each policy,” Lekas told TechCrunch. “We have a price and a model that no one else can replicate at this stage. And so we’re trying to double down on it and get to scale quickly in all 51 states…The funny thing is, even though we’re four years younger than the insurtechs that preceded us, I think we’ll be the first one to get to cash flow positive by a stretch.” Lekas began his career at Allstate, where he went on to hold roles in underwriting, technology and product management. He then went on to build Esurance’s first online home insurance business. But in the back of his mind, Lekas yearned to figure out a way to make insurance more accessible for more people. And so he teamed up with Joe Emison, and Branch was born. Since it went to market in 2019, Branch claims to have saved its “members” an average of $548 a year. Image Credits: Branch Branch is not the first insurtech that Weatherford has backed. It has also backed The Zebra, an Austin-based company that operates an insurance comparison site that achieved unicorn status last year. For Branch to have raised a nine-digit round in a challenging macroeconomic environment and amid a global venture slowdown is no easy feat. Add to that the fact that a number of insurtechs that went public last year — such as Root, Lemonade, Hippo and Metromile — are struggling with stocks at all-time lows and others such as Policygenius are laying off , and Branch’s achievements feel even more impressive. Early on, though, it was difficult to get investors’ attention, Lekas admits. “We came from a place where we were not the first insurtech, so we battled early since venture doesn’t like to compete with venture, so once venture thinks there’s a well-funded, intelligent, credible group of people tackling a problem, then they think twice about putting more money behind a competitor,” he told TechCrunch. “But now we’re at at a scale where we’re selling more product than most of those that came before us. I think the thing we’ve made is the thing that everyone thought they were investing in to begin with.” Ian Sigalow, co-founder and managing partner at early and repeat Branch investor Greycroft, said his firm has backed the insurtech in every round it has raised “since the beginning.” “What attracted us at the outset hasn’t changed — Branch is one of the first companies to offer embedded home and auto insurance, and delivers massive savings for its members,” Sigalow told TechCrunch. “Steve Lekas also stood out from many other insurance founders because of his prior experience — he had already scaled the homeowner’s business at Esurance and run product, data science, strategy, and marketing at Verisk, which is the one of the largest data providers to the insurance industry. As a result of his experience, he was able to execute on the market opportunity very quickly.” He believes that Branch’s biggest differentiator is that its tech stack allows it to instantly underwrite and bind policies with just a name and address, ultimately resulting in lower-cost policies. “As a business, especially at a time when insurtechs are struggling in the public market, we believe Branch’s technology stands apart and will allow them to grow quickly while also producing sustainable long-term loss ratios,” Sigalow added. In addition to working to become profitable, Branch has more altruistic goals. The startup is a public benefits corporation and manages a reciprocal exchange, an organization in which the policyholders are the actual owners of the policy premiums. The structure is built to align incentives and provide members with as much savings as possible. It also has formed a nonprofit, SafetyNest , to help those who are un- or underinsured. My weekly fintech newsletter, The Interchange, launched on May 1! Sign up here to get it in your inbox.

American Family Ventures Investments

78 Investments

American Family Ventures has made 78 investments. Their latest investment was in MileUp as part of their Unattributed VC on August 8, 2022.

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American Family Ventures Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

8/12/2022

Unattributed VC

MileUp

$4.75M

Yes

1

6/15/2022

Series B

Sana Benefits

$60M

No

2

3/1/2022

Series C

Branch

$147.05M

No

4

2/11/2022

Seed - II

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$99M

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10

12/6/2021

Series C

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$99M

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10

Date

8/12/2022

6/15/2022

3/1/2022

2/11/2022

12/6/2021

Round

Unattributed VC

Series B

Series C

Seed - II

Series C

Company

MileUp

Sana Benefits

Branch

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Amount

$4.75M

$60M

$147.05M

$99M

$99M

New?

Yes

No

No

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Co-Investors

Sources

1

2

4

10

10

American Family Ventures Portfolio Exits

11 Portfolio Exits

American Family Ventures has 11 portfolio exits. Their latest portfolio exit was ReviewTrackers on June 16, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

6/16/2022

Acquired

$99M

1

6/2/2022

Acquired

$99M

3

11/9/2020

Acquired

$99M

2

5/20/2019

IPO

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$99M

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10

11/9/2018

Acquired

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$99M

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10

Date

6/16/2022

6/2/2022

11/9/2020

5/20/2019

11/9/2018

Exit

Acquired

Acquired

Acquired

IPO

Acquired

Companies

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Valuation

$99M

$99M

$99M

$99M

$99M

Acquirer

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Sources

1

3

2

10

10

American Family Ventures Fund History

2 Fund Histories

American Family Ventures has 2 funds, including AFV Fund III.

Closing Date

Fund

Fund Type

Status

Amount

Sources

8/18/2020

AFV Fund III

$213M

4

8/2/2019

Venture Investors Health Fund 6 Limited Partnership

$99M

10

Closing Date

8/18/2020

8/2/2019

Fund

AFV Fund III

Venture Investors Health Fund 6 Limited Partnership

Fund Type

Status

Amount

$213M

$99M

Sources

4

10

American Family Ventures Team

3 Team Members

American Family Ventures has 3 team members, including current Managing Director, Kyle Beatty.

Name

Work History

Title

Status

Kyle Beatty

Managing Director

Current

Daniel K. Reed

Managing Director

Current

Drew Aldrich

AXA Venture Partners, S&P Global Ratings, and FXCM

Managing Director

Former

Name

Kyle Beatty

Daniel K. Reed

Drew Aldrich

Work History

AXA Venture Partners, S&P Global Ratings, and FXCM

Title

Managing Director

Managing Director

Managing Director

Status

Current

Current

Former

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