What is Understory?
Founded in 2012 and headquartered in Madison, Wisconsin, Understory specializes in processing complex weather data through advanced atmospheric artificial intelligence. Its core competency lies in accurately measuring risk, which it translates into specialized hail insurance products tailored for the automotive retail sector. By providing granular risk insights, Understory empowers auto dealerships to mitigate potential financial losses associated with severe weather events, particularly hail.
How much funding has Understory raised?
Understory has raised a total of $39.1M across 5 funding rounds:
Angel/Seed
$1.9M
Series A
$7.5M
Private Equity
$7.5M
Series B
$7.3M
Series A
$15M
Angel/Seed (2014): $1.9M with participation from True Ventures, Vegas Tech Fund, SK Ventures, and RRE Ventures
Series A (2016): $7.5M led by True Ventures, Monsanto Growth Ventures, 4490 Ventures, SK Ventures, RRE Ventures, and CSA Partners
Private Equity (2018): $7.5M supported by Revolution’s Rise of the Rest Seed Fund and 4490 Ventures
Series B (2019): $7.3M featuring True Ventures
Series A (2024): $15M backed by Prelude Ventures and True Ventures
Key Investors in Understory
Prelude Ventures
Prelude Ventures is an investment firm that focuses on supporting early-stage startups with significant potential to mitigate climate change. The company prioritizes various sectors including built environment, carbon management, compute, food and agriculture, energy, manufacturing, and mobility. Their mission is centered around addressing climate issues through innovative solutions. Prelude Ventures aims to collaborate with its portfolio companies to drive impactful change in the climate sector.
True Ventures
True Ventures is a founder first venture capital firm that partners with creative teams at the earliest stages, providing capital, guidance and a strong community to help build enduring technology and artificial intelligence driven companies.
4490 Ventures
4490 Ventures is a venture capital firm that invests in early-stage technology companies. They focus on supporting founders with innovative ideas and strong execution capabilities, aiming to foster growth and market leadership.
What's next for Understory?
The recent enterprise-level funding, characterized as a major strategic investment, positions Understory for accelerated scaling and product development. This capital injection is expected to fuel advancements in its AI-driven risk assessment capabilities and broaden the reach of its specialized insurance offerings. The company's focus on a niche but critical market, combined with its technological prowess, suggests a strategic expansion into new territories and potentially new insurance verticals where weather-related risk is a significant factor. The ongoing backing from prominent venture capital firms underscores investor confidence in Understory's business model and its potential to disrupt the insurance technology landscape.
See full Understory company page
