At this time AgentSync introduced that it has closed a $4.Four million Seed spherical, co-led by Elad Gil and Caffeinated Capital. Different well-known names from the Silicon Valley scene took half in its funding spherical, together with Affirm’s Max Levchin and the podcaster turned VC Harry Stebbings, amongst others.
The spherical caught our eye as a result of AgentSync is working in an area that has seen a notable wave of enterprise curiosity in 2020 — insurtech, which we’ve coated considerably extensively — and since it shared exhausting income numbers, which we love.
From Zenefits to new beginnings
AgentSync presents what it describes as “compliance as a service,” serving to insurance coverage carriers and insurance coverage companies observe insurance coverage dealer licensing knowledge. For firms accustomed to doing this work with spreadsheets, AgentSync presents a quicker methodology, constructed on prime of Salesforce’s platform, saving time and reducing the prospect of error.
(Tech corporations constructing on prime of Salesforce are having a very good 12 months, by the way.)
The thought for the corporate was born from Sabharwal’s time at Zenefits.
Sabharwal was an early-employee on the notorious startup. To listen to the AgentSync co-founder inform the story, Zenefits grew at an inhuman clip, scaling from 100 workers when Sabharwal joined to over 1,700 a 12 months later.
Throughout its interval of hyper-growth, reporting later uncovered, Zenefits didn’t sufficiently recognize that it operated in a highly-regulated business. The ensuing compliance mess pressured co-founder Parker Conrad from the corporate, with former Yammer boss David Sacks taking the reins to wash home.
On the time of his takeover, TechCrunch reported that Sacks wrote to Zenefits workers that “compliance is like oxygen,” and that with out the corporate would “die.”
Conrad bought fined by the SEC, Zenefits reduce workers, and needed to re-value itself. Sacks finally left the corporate. However behind the headlines Sabharwal described work to rebuild Zenefits in a extra compliant trend from the inside-out. A part of these efforts, he stated in an interview, was constructing software program that helped observe agent compliance, a mission that Zenefits later open-sourced and launched.
TechCrunch coated the discharge on the time, writing that Zenefits had constructed “a licensing compliance app it created in-house to make sure its gross sales persons are correctly licensed to promote insurance coverage in a given state accessible at no cost to anybody to obtain from the Salesforce App Trade.”
The software program built-in with Nationwide Insurance coverage Producer Registry (NIPR) knowledge, which the co-founder describes as a supply of fact within the insurance coverage market. The software program allowed customers to verify that particular person brokers had been compliant. The trouble purchased Zenefits some kudos with regulators, and, in line with Sabharwal, different firms wanting to make use of the software program.
From the assembly level of inner software program mission and exterior demand, AgentSync was shaped, with Sabharwal leaving Zenefits to start out his firm together with his companion, Knight. Knight, who has carried out stints at Dropbox (Head of Enterprise Know-how) and Stripe (Head of Inside Programs), labored part-time at AgentSync earlier than becoming a member of the startup full-time this 12 months.
Zenefits signed the IP from the sooner mission over to Sabharwal earlier than his group wrote any code for AgenySync, permitting the corporate to get a clear begin.
The insurance coverage market is gigantic, profitable, and old school. That makes it a chief area to assault. The software program additionally helps teams onboard brokers, execute what the startup calls “automatically-generated compliance evaluation” to assist spot gaps and different knowledge errors.
And AgentSync is seeing traction, scaling to $1.9 million annual recurring income (ARR) on the time of publication. The corporate costs per lively agent a buyer has, with some value tiering based mostly on scale.
At this time the startup has 17 individuals, and is focusing on 22 by the tip of the 12 months. (It’s investing in its go-to-market performance post-fundraising.)
On the personnel facet, Knight, the corporate’s CTO, has constructed a technical group that’s majority ladies, an sadly a rarity within the business. She additionally stated that she’s “aware of the fairness and pay gaps that exist for girls and underrepresented teams throughout the business.”
I haven’t had the prospect to speak to too many denizens from the Zenefits alumni, however what’s enjoyable about AgentSync is that it was born successfully out of an effort to repair what went unsuitable on the unicorn. And, it’s discovered a marketplace for that repair. Let’s see how far it may get on $4.Four million.