Shepherd, the AI-native commercial insurance platform, has raised $42 million in a Series B round led by Intact Private Capital, with participation from Spark Capital and Costanoa Ventures. The round brings total funding to $67 million.
The raise comes off the back of sharp growth. Over the past 24 months, Shepherd expanded revenue more than sevenfold, issuing over 1,500 policies for more than 600 customers and covering north of $400 billion in project value. Its client roster includes leading AI labs, chip manufacturers, hyperscalers, and the general contractors building the physical facilities that house them.
The construction boom behind the AI industry is still accelerating. Hyperscalers and frontier labs are collectively pouring hundreds of billions into data centers, power generation, and renewable energy projects. Each of those projects has to be built, and each has to be insured.
Traditional carriers were not built for this pace. Complex commercial construction projects routinely wait weeks for a single quote. Brokers bounce between calls and resubmissions, while legacy systems produce slow, inconsistent outcomes.
Shepherd's AI replicates underwriting workflows in seconds, compressing what used to take weeks into hours. The platform connects directly with construction technology partners, including Procore, Autodesk, OpenSpace, DroneDeploy, and Samsara, pulling in real-time project data rather than relying on a static application.
Where a traditional carrier evaluates a fixed snapshot, Shepherd monitors a project continuously: incident tracking, inspection rates, document management, and jobsite conditions updated as work progresses. That live picture powers the Shepherd Savings program, which works like telematics-based pricing in auto insurance. Contractors using Shepherd's technology partners receive differentiated pricing at enrollment, with rates that can improve at renewal once a full year of data builds a more precise risk profile.
"The AI race moved from the cloud to the construction site," said Justin Levine, CEO and Co-Founder of Shepherd. "The insurance market that is supposed to keep those projects moving has been operating the same way for decades. We built Shepherd because we believed the old approach to commercial underwriting needed to change fundamentally, not just get faster, but get smarter."
Shepherd's longer-term ambition is fully autonomous underwriting. Today a typical underwriter processes around 20 accounts per month. Under Shepherd's model, one underwriter would oversee 200, with AI handling intake, data enrichment, risk analysis, and pricing. The company is on a two-year path toward supervised autonomy, targeting a 10x increase in underwriting capacity.
"We mapped the same autonomy trajectory that transformed self-driving vehicles and applied it to underwriting," said Mo Mahallawy, CTO and Co-Founder. "The underwriter sets strategy, manages exceptions, and focuses on the accounts that matter most."
Intact Private Capital, the investment arm of one of the world's largest property and casualty insurers, led the round and is also expanding its carrier capacity partnership with Shepherd, providing additional coverage alongside Shepherd's existing relationships.
"Their AI-native approach to processing and segmenting commercial risk is unlike anything else we've seen in the industry," said Justin Smith-Lorenzetti, Managing Director at Intact Private Capital. "Justin, Mo, and the world-class team at Shepherd drove our conviction not just to lead this round but also to support Shepherd as a long-term capacity partner."
"Shepherd has built an approach to commercial insurance that uses real operational data to assess risk in ways legacy carriers simply can't," said Mark Selcow, General Partner at Costanoa Ventures. "Better data leads to better outcomes for builders and brokers."
Founded in San Francisco, Shepherd operates as a managing general underwriter, retaining underwriting authority in house while partnering with large carriers for capacity. The company currently covers commercial property and casualty for construction and infrastructure, with a growing renewable energy vertical. Builder's Risk was added to the product range in April 2025.
Spark Capital and Costanoa Ventures both participated in this round alongside lead investor Intact Private Capital.
