Frontier Risk Group ("Frontier Risk" or "the Company") announced today the closing of a $3M SEED+ round led by Casa Verde, bringing together venture investors from the cannabis and insurance sectors to build the industry's first tech-enabled insurance ecosystem to better service cannabis risk.
ROWAYTON, Conn., Jan. 22, 2025 /PRNewswire-PRWeb/ -- Frontier Risk Group ("Frontier Risk" or "the Company") announced today the closing of a $3M SEED+ round, bringing together venture investors from the cannabis and insurance sectors to build the industry's first tech-enabled insurance ecosystem to better service cannabis risk. The company has raised $6M in funding to date.
Existing investor Casa Verde, a pioneer in cannabis technology investing, led the most recent financing round with significant insider participation. The deal also includes a strategic partnership with Illinois Casualty Company marking a move by traditional insurers into the cannabis sector. Stonybrook Capital acted as financial advisor for the transaction.
Medical marijuana is now legal in 20 states and in the District of Columbia and recreational cannabis is eligible for sale in 23 states along with D.C. Retail cannabis sales are expected to increase to $54 billion by 2027. Despite this explosive growth, cannabis cultivators, retailers and businesses serving cannabis-infused products face unique insurance risks that represent a barrier to entry for most insurance providers.
"The first 18 months of Frontier Risk have proven the major need for specialty insurance solutions across cannabis and other regulated industries, and we're thrilled to announce today's funding with the continued support of existing investors and the addition of Illinois Casualty Company as a major strategic investor," says Frontier Risk Founder and Chief Executive Officer James Whitcomb. "This capital will allow us to continue our robust brokerage growth and complete our transition to full-stack retailer and capacity provider, offering the entire cannabis supply chain a one-stop solution to a diverse array of insureds with underwriting specific to highly regulated industries."
Illinois Casualty Company, an A.M. Best A- rated carrier focused on the food & beverage industry, joined the round as a strategic partner, anticipating explosive growth of THC beverages as an alcohol alternative.
"Frontier Risk is breaking new ground in this exciting, high-growth category," said Arron Sutherland, Chief Executive Officer of Illinois Casualty Company. "James and his industry-leading team are writing the next chapter of innovation in cannabis insurance, paving the path for other emerging, highly-regulated specialty categories."
Leveraging its experience in building original, best-in-class cannabis supply chains by hand, Whitcomb's team of brokerage, underwriting, and technology professionals from world-leading firms have built a proprietary underwriting engine, complete with rich cannabis datasets to offer reinsurers a clear understanding of the present risk associated with cannabis and where it's going.
About Frontier Risk Group
Frontier Risk Group is driven by a mission to bring market insurance solutions backed by technology and data to improve access, pricing and risk capacity across highly regulated, specialty ecosystems. Through its advanced technology platform providing risk data to all stakeholders, Frontier Risk is rapidly becoming the new industry standard, enabling hundreds of specialty brokerage clients to access cussing edge risk solutions and brokerage services from one-stop solutions for small, early-stage cannabis companies to complex P&C and management liability programs and advice to some of the largest cannabis companies in the world. For more information, please visit frontierrisk.com.
Frontier Risk Contact:
Peter Berg
203-246-4309
Media Contact:
Ellyn Winters-Robinson, Ignition Communications
519-574-2196
Media Contact
Ellyn Winters-Robinson, Ignition Communications, 1 519-574-2196, [email protected]
Peter Berg, Frontier Risk, 1 203-246-4309, [email protected], www.frontierrisk.com/
SOURCE Frontier Risk Group
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