Stand, a San Francisco-based home insurer, raised $70 million in a Series C funding round at a $1 billion valuation, the company announced today. The startup uses proprietary digital twin technology to price wildfire risk by simulating individual homes rather than relying on zip code statistics. Stand currently insures more than $10 billion of property, a tenfold increase from a year ago, focusing on wildfire risk in California and hurricane risk in Florida, according to fortune.com.
The funding round was led by Saga Ventures, with participation from Lowercarbon, Eclipse, Equal Ventures, Inspired Capital, Neotribe, and Jackson Square Ventures. Stand’s chief science officer, Matt DiStefano, demonstrated how the company’s technology overlays heat maps on 3D models of homes to identify specific risk factors, such as trees near a house, which can significantly reduce insurance premiums when mitigated. CEO Dan Preston said the business is growing about 15% monthly, driven by this targeted risk assessment approach.
Stand’s approach challenges traditional wildfire insurance pricing, which typically relies on historical data and geographic averages. By simulating each home’s unique risk factors, Stand aims to provide more accurate pricing and actionable advice to homeowners. This model contrasts with conventional insurers and could influence how wildfire risk is managed in the insurance sector. The company’s growth and valuation highlight increasing investor interest in technology-driven risk management solutions amid rising climate-related insurance challenges.
Stand’s rapid expansion is reflected in its insurance portfolio, which grew from $1 billion to over $10 billion in insured property within a year. The company’s next milestone will be expanding beyond California and Florida, where it currently operates, to other states vulnerable to natural disasters, as reported by fortune.com.