Spott, a Y Combinator-backed insurtech startup, has raised $3.2 million in funding to expand its embedded insurance infrastructure for digital platforms. The round included participation from Base10 Partners, Y Combinator, Fortino Capital, True Equity, and a range of strategic angel investors.

Founded by Lander Degrève, Spott is building a new layer of real-time, usage-based insurance infrastructure that allows online marketplaces, SaaS platforms, fintech tools, and logistics providers to offer embedded insurance products at the point of risk - seamlessly integrated into user workflows.

As risk management becomes increasingly dynamic, Spott is betting on an API-first model that lets platforms underwrite and bind policies on the fly, closing the gap between digital action and coverage.

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What Spott Does

Spott provides white-labeled insurance infrastructure that enables digital platforms to offer tailored insurance solutions to their users - without becoming insurers themselves.

Key features include:

• Plug-and-play insurance APIs for liability, product protection, fraud coverage, and more
  
• Dynamic underwriting engines that adapt policies based on real-time user behavior
  
• Fully embedded UX tools that integrate natively into checkout flows, onboarding, or account settings
  
• Partner access to licensed insurers, eliminating the regulatory complexity for platforms
  
• Risk analytics dashboards to monitor exposure across cohorts, regions, or product types
  

Spott positions itself not as a new broker, but as the backend engine powering insurance-native product experiences. Platforms retain full ownership of the customer journey while unlocking new revenue streams and risk control mechanisms.

Use cases span ecommerce, proptech, gig work, B2B SaaS, and embedded fintech - any vertical where a transaction introduces risk and coverage becomes a trust accelerator.

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Why It Matters

The embedded insurance space is heating up - and for good reason. Modern platforms are already underwriting trust: they onboard users, verify identity, monitor transactions, and set terms. But when things go wrong - an accident, theft, damage, fraud - they're often caught without recourse.Why It Matters

Insurance is no longer a standalone purchase - it’s becoming invisible infrastructure, tightly woven into the flows of modern platforms. And yet, most platforms still treat it as an afterthought or external referral, leading to disjointed experiences and low adoption.

Spott changes that by letting platforms offer the right insurance at the right time, in the exact context where users already expect protection.

This enables:

• Higher attach rates, since offers are hyper-relevant to the transaction
  
• Real-time behavioral underwriting, improving margins and risk accuracy
  
• Increased user retention, driven by platform trust and added value
  
• Incremental revenue, without carrying underwriting risk
  

One critical insight often missed by API-first founders: distribution is not just about reach - it’s about proximity to a decision. Spott’s strategy is a masterclass in this. The closer you embed your product to the moment a user must take action - buying, booking, shipping, transacting - the more inevitable that product becomes. Insurance, when embedded preemptively at the point of risk, goes from being a “maybe later” to a “must now.”

This is where many infrastructure startups falter: they optimize for scalability before inevitability. But scale only matters if the product shows up where the urgency already exists. What Spott has done is build not just great infra, but infra that’s magnetically timed - showing up when it’s most needed, not just where it can be integrated.

That approach doesn’t just increase conversion - it builds trust. Because in risk-driven markets, timing is trust.

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Market Outlook: Embedded Insurance Is Accelerating

Industry Outlook: Embedded Insurance Is a $700B+ Opportunity

Spott is entering a massive and fast-growing global market that is reshaping insurance delivery across every digital vertical.

Embedded Insurance by the Numbers

• The embedded insurance market is projected to grow from $63 billion in 2022 to over $722 billion by 2030, at a CAGR of 34.5% (InsTech London)
  
• Over 60% of consumers say they prefer to purchase insurance as part of the product or platform they’re already using (Capgemini)
  
• Platforms that integrate embedded insurance see up to 6x higher attach rates than standalone insurance offerings (Deloitte)
  
• The usage-based insurance (UBI) market - particularly for mobility and gig work - is expected to exceed $150B by 2031 (Allied Market Research)
  

 Infrastructure Opportunity

• The API economy in fintech and insurtech is growing rapidly, with insurance APIs expected to be a $25B+ market by 2027 (CB Insights)
  
• Developer-first platforms like Stripe, Plaid, and Unit have shown that modular, invisible infrastructure is key to unlocking mass adoption across sectors
  
• McKinsey forecasts that embedded finance (including insurance) will account for $230B in annual revenues by 2025, with APIs driving most of the growth
  

Yet, despite these tailwinds, most insurance APIs today are focused on quoting or marketplace comparison. Spott is building the infrastructure beneath the offer - not just how insurance is sold, but where and when it’s activated.

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Where Spott Stands Out

Unlike traditional brokers or static comparison sites, Spott is focused on infrastructure, not resale. That distinction matters - because it means the startup isn’t competing with carriers. It's enabling them.

Spott lets digital platforms:

• Own the customer relationship without becoming insurers
  
• Bundle insurance as part of core features, like hosting, delivery, or vendor onboarding
  
• Localize risk using user behavior and geographic metadata
  
• Launch new insurance products without regulatory overhead, by working with licensed carrier partners behind the scenes
  

This is critical in a regulatory environment where insurance remains highly fragmented across borders, yet platforms operate globally.

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What’s Next for Spott?

With its fresh $3.2 million in funding, Spott plans to:

• Expand API integrations across ecommerce, SaaS, and fintech ecosystems
  
• Partner with more insurers to diversify coverage types and geographies
  
• Develop no-code tools for product teams to launch embedded flows without engineering lift
  
• Grow the team across engineering, underwriting, and B2B growth
  
• Deepen real-time risk scoring models, using transaction-level metadata and platform analytics
  

Spott’s vision is clear: to become the Twilio of insurance - a modular backend that powers modern risk coverage for every platform, product, and user flow.

And in a world where every transaction carries latent liability, embedding trust at the moment of action isn’t just smart - it’s inevitable.