Notch, the insurance technology startup founded by Rafael Broshi, has secured $15 million in its Seed round, backed by Lightspeed, Jibe Ventures, LionTree, Phoenix, and Munich Re Ventures. This milestone marks a major step forward in Notch’s mission to reimagine insurance for the digital-first era, where risks evolve as quickly as the technologies driving them.

By bridging the gap between traditional insurance and modern digital assets, Notch is positioning itself as a category-defining player in the insurtech market. The funding will fuel product innovation, team expansion, and market entry into high-growth areas that are underserved by legacy carriers.

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Why Notch Is Different

Traditional insurers are built for predictable, slow-moving risks - like car accidents or home damages. But the digital economy introduces entirely new categories of risk: downtime in SaaS platforms, lost revenue from cloud outages, data breaches in real-time environments, or disruptions across digital supply chains.

Notch stands out by designing insurance products from the ground up for these modern scenarios. By integrating technology-driven underwriting, real-time monitoring, and rapid claims resolution, Notch moves beyond the reactive nature of legacy models. Its policies are tailored for businesses that run entirely online, where downtime or breaches can result in millions of dollars in lost revenue overnight.

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The Insight That Fuels Sustainable Growth

One of the least discussed realities in insurtech is that distribution matters as much as product innovation. Startups often obsess over reinventing policies or underwriting models, but the real unlock comes when the insurance offering is embedded where customers already operate.

This is where Notch’s strategy shines. By integrating its products directly into digital platforms, SaaS ecosystems, and financial workflows, the company doesn’t just sell policies - it becomes part of the customer’s operating environment. For founders, the lesson is simple but profound: the most scalable growth often comes from distribution embedded in core workflows, not from direct sales alone.

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Backed by Top-Tier Investors

Notch’s Seed round was anchored by some of the most respected names in venture capital and insurance innovation:

• Lightspeed Venture Partners: Known for backing category leaders like Affirm, Carta, and Snap.
  
• Jibe Ventures: A fund with deep experience in scaling early-stage tech.
  
• LionTree: A global investment and advisory firm with strong media and fintech expertise.
  
• Phoenix: An Israeli insurer with extensive domain experience.
  
• Munich Re Ventures: The venture arm of Munich Re, one of the largest reinsurers in the world, bringing credibility and insurance-specific insights.
  

The mix of traditional VC firepower and domain-specific insurance backing provides Notch with both capital and strategic leverage.

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What Notch Offers

Notch is building a suite of insurance products designed for the fast-moving digital economy. While details remain under wraps, the company has signaled its focus on:

• Revenue Protection: Covering losses from unexpected SaaS outages, cloud downtime, or payment disruptions.
  
• Cyber Resilience: Going beyond traditional cyber insurance with policies that are dynamic and responsive to real-time risks.
  
• Embedded Insurance: Integrating coverage options directly into SaaS and fintech workflows so businesses can activate protection in a few clicks.
  

This approach positions Notch as not just an insurer but a platform partner for digital-first businesses.

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Early Traction and Market Fit

Insurance has long been criticized for slow claims processes, opaque pricing, and outdated risk models. Notch is tackling these pain points head-on, using real-time data, automation, and simplified interfaces to provide experiences that mirror the speed and transparency of modern SaaS.

Early customers are reportedly responding well, with adoption strongest among digital-first SMEs, SaaS vendors, and global e-commerce platforms that see insurance as critical to maintaining operational continuity.

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Why This Market Is Exploding

The timing of Notch’s funding is no accident. The global insurtech market was valued at $5.45 billion in 2022 and is projected to grow at a CAGR of over 50% through 2030, according to Grand View Research.

At the same time:

• The average cost of a data breach reached $4.45 million in 2023 (IBM).
  
• Cloud downtime costs enterprises $300,000 per hour on average (IDC).
  
• SMEs now account for 43% of cyberattacks, yet most lack adequate coverage (Verizon DBIR).
  

This data illustrates the scale of the opportunity: traditional carriers are ill-equipped to handle digital-native risks, creating a massive opening for players like Notch.

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Building for the Next Decade

Notch is not just filling a gap - it’s anticipating where the market is headed. With businesses moving further into cloud-native, AI-powered, and API-driven models, risks will only multiply and evolve. Insurance has to keep pace, and that requires platforms that are as dynamic and adaptive as the businesses they protect.

The $15M Seed round ensures Notch has the resources to accelerate product development, expand into new geographies, and recruit top talent to execute on this ambitious vision.

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Final Thoughts

The insurance industry is one of the last major financial verticals to be disrupted by software. Notch’s raise signals that the era of digital-native insurance is here. By embedding itself directly into the workflows of modern businesses, the company is setting a new standard for how insurance products are bought, delivered, and experienced.

For founders, Notch’s journey offers a key reminder: success often hinges on distribution and workflow integration as much as product design. In the fast-moving digital economy, the winners will be those who don’t just solve problems but do so where customers already live and operate.