Delos Raises $5.3M to Help California Homeowners Insure Against Wildfires

Delos, a San Francisco-based insurtech startup, has raised $5.3 million in seed funding to harvest cutting-edge technology to provide insurance protection to homeowners in wildfire risk areas.

The funding round was led by IA Capital, with participation from Avanta Ventures, and Red Dog Capital. A group of strategic investors led by insurance executive Jonathan Crystal and Futureland Syndicate also joined the round. The funding will boost Delos’s efforts to expand its footprint in California’s insurance market at a time when wildfires are on the rise. Matt Perlman, Partner at IA Capital, referred to the firm’s participation by stating:

“We are impressed by the robust science behind Delos’ innovative wildfire underwriting model. Delos has developed a creative and viable solution to the persistent problem of insuring homes in areas under threat of wildfire. We are pleased to support them as they expand in California and beyond.”

Delos was co-founded back in 2017 by Kevin Stein and Shanna McIntyre, two aerospace engineers aiming to provide insurance coverage to homeowners living in territories deemed too risky by traditional insurance companies. The startup harvests both satellite imagery and artificial intelligence to better assess the risks and empower insurance carriers to insure the homes in a profitable manner. Stein, Delos CEO, said about the round and the startup’s mission:

“I am very pleased that our investors have shown such strong confidence in Delos and our technology. With this round of financing, Delos can go much further in achieving its dual mission of making reasonably priced insurance available to California homeowners while providing insurers and reinsurers a reliable stream of profitable revenue.”

According to the California Department of Forestry and Fire Protection, over 3 million acres have burned so far in 2021, affecting more than 3.6 thousand structures. While the insurance industry has taken corrective action to try to deal with the situation, the economic risks have resulted in many homeowners being unable to insure their properties. Delos’ underwriting model and technology provide carriers with a better assessment of the risks and the ability to react to them, allowing them to provide coverage to those in need.