Gradient AI Valuation, Funding & Investors
Gradient AI is valued at $240M as of July 2024.
Last Gradient AI valuation
$240M
Undisclosed stage · Jul 2024
Last Gradient AI funding round
$56M
Series C · Jul 2024
Cumulative funding Gradient AI raised
$123M
across 5 funding rounds
Key investors in Gradient AI
MassMutual Ventures
Forté Ventures
Sandbox Insurtech Ventures
American Family Ventures
Stone Point Capital
Centana Growth Partners
About Gradient AI
Gradient AI is a San Francisco-headquartered provider of artificial intelligence tools for the insurance industry. Its platform enhances underwriting accuracy through predictive models analyzing claims history, telematics, and socio-demographic data. Adopted by carriers like Liberty Mutual and Progressive, it also streamlines claims adjudication and fraud detection, integrating with policy administration systems for real-time risk scoring across property, casualty, and life insurance lines.
Founded
2012
HQ
Boston, MAWebsite
Status
Privately held
Customer focus
B2B
Revenue model
Subscription
Valuation
$240M (Jul 2024)
Gradient AI Valuation
Gradient AI is currently valued at $240M, based on its undisclosed-stage round in July 2024.
Gradient AI valuation by funding round
| Date | Stage | Valuation |
|---|---|---|
| Jul 2024 | Undisclosed stage | $240M |
Gradient AI Funding History
Gradient AI has raised a total of $123M across 5 funding rounds.
Gradient AI's first fundraising round was a $5M seed round in January 2019. The most recent completed round was a $56M Series C in July 2024.
Gradient AI funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Jul 2024 | Series C | Centana Growth Partners (lead); Forté Ventures; MassMutual Ventures; Sandbox Insurtech Ventures | $56M | - | Gradient AI, a Boston-based enterprise software provider, announced a $56.1 million Series C funding round led by Centana Growth Partners on July 30, 2024, with participation from existing investors MassMutual Ventures, Sandbox Insurtech Ventures, and Forte Ventures. The company specializes in artificial intelligence and machine learning solutions designed specifically for the insurance industry, helping insurers automate underwriting and claims risk prediction, reduce operational costs, and improve profitability. Gradient AI's platform leverages a comprehensive industry data lake containing tens of millions of policies and claims, combined with economic, health, and geographic information to develop advanced AI models that enable more sophisticated risk assessment. The new capital was earmarked to support product development, drive innovation and efficiency across the insurance sector, and enhance customer success and sales functions. CEO Stan Smith stated the company planned to use the funding wisely to enhance its platform and deliver greater value to customers, while Matt Alfieri from Centana Growth Partners highlighted that Gradient AI had demonstrated strong financial results and was at an important inflection point for expansion. The company positioned itself as delivering demonstrable return on investment for its customers through process automation, cost reduction, and improved underwriting and claims outcomes, targeting both property and casualty and health insurers. |
| Jul 2024 | Undisclosed stage | - | $36M | $240M | Gradient AI is an enterprise software provider of artificial intelligence solutions for the insurance industry, focusing on P&C and Health insurers to automate processes, reduce costs, improve risk assessment, and enhance operational efficiencies. The company announced a $56.1 million Series C funding round on July 30, 2024, led by Centana Growth Partners with participation from MassMutual Ventures, Sandbox Insurtech Ventures, and Forte Ventures. This later-stage VC round, dated June 2024, brought total funding raised to $89.4 million. Funds are allocated to product development, new features for the existing suite, launching new products, investing in R&D for AI innovation, bolstering customer success, and sales functions. Gradient AI has demonstrated strong financial results and customer ROI, positioning it at an inflection point for growth, as noted by investors. Centana Growth Partners highlighted the experienced team and products delivering demonstrable value. Premier Alternatives reports a current valuation of $240.0 million as of June 27, 2024, with a capital efficiency ratio of 2.68x (valuation over total funding raised). The investment supports Gradient AI's technological leadership in insurance AI, amid increasing insurer sophistication in risk and operations. CEO Stan Smith emphasized using funds to enhance the platform and deliver value. |
| Apr 2021 | Series B | American Family Ventures (lead); Stone Point Capital; Forté Ventures; MassMutual Ventures; Sandbox Insurtech Ventures; BSC Capital | $20M | - | Gradient AI is an enterprise software provider of artificial intelligence and machine learning solutions for the insurance industry, focusing on predictive analytics, decision support, and workflow automation to improve underwriting and claims processes across group health, P&C, and workers' comp insurance. The company announced a $20 million Series B funding round on April 20, 2021, led by American Family Ventures, with participation from principals of Stone Point Capital and BSC Capital, as well as existing investors MassMutual Ventures, Sandbox Insurtech Ventures, and Forté Ventures. This followed a $6 million Series A led by Forté Ventures and Sandbox Insurtech Ventures. The funding aimed to meet growing demand, drive product development, invest in technology and automation, expand employee headcount, and grow the partner and customer ecosystem. By September 2022, Gradient AI reported over 100% revenue growth in Q1 and Q2 2022 compared to the same period in 2021, added over 30 new customers, expanded to more than 40 implementations with clients like Allied National, AmFed, Builders, Cannon Cochran Management Services, Service Lloyds, and True Captive, and nearly doubled its staff. The company's solutions leverage large proprietary datasets and advanced modeling to help insurers accelerate profitable growth and enhance decision-making. Gradient AI continued its growth trajectory with a $56.1 million Series C round in July 2024 led by Centana Growth Partners, again with participation from MassMutual Ventures, Sandbox Insurtech Ventures, and Forté Ventures, to support product development, customer success, and sales. The firm analyzes tens of millions of policies and claims to aid better underwriting decisions, positioning it in the insurtech space amid increasing insurer focus on AI for risk assessment and operational efficiency. |
| Oct 2019 | Series A | Forté Ventures (lead); MassMutual Ventures | $6M | - | Gradient AI raised $6 million in a Series A financing round around October 2019, led by Forté Ventures and Sandbox Insurtech Ventures, with participation from existing investor MassMutual Ventures. The company provides artificial intelligence solutions for the insurance technology space, focusing on enterprise software to help commercial insurers automate and improve underwriting results, reduce claim costs, and enhance operational efficiencies. The funding was intended to meet demand, drive growth of its AI and machine learning solutions, and fuel development of its SaaS platform. Gradient AI's platform analyzes tens of millions of policies and claims, complemented by economic, health, and litigation datasets, to deliver predictions for claims management, risk ranking, case-level reserving, medical treatment, subrogation, large losses, settlement, fraud, and litigation. It targets insurance carriers, managing general agents, professional employer organizations, third-party administrators, insurance pools, and other professionals. The software integrates via API for automated workflows and straight-through processing of policy applications. CEO Stan Smith highlighted how the platform enables claims and underwriting teams to make better decisions efficiently, leading to more profitable business and improved outcomes. Investors like Tom Hawkins of Forté Ventures noted Gradient's role in advancing ML-based analytics adoption in commercial insurance. |
| Jan 2019 | Seed | - | $5M | - | - |
Who has invested in Gradient AI?
7 investors have backed Gradient AI across its funding rounds, including MassMutual Ventures, Forté Ventures, Sandbox Insurtech Ventures, American Family Ventures, Stone Point Capital and Centana Growth Partners.
Lead investors include Centana Growth Partners, American Family Ventures and Forté Ventures.
Gradient AI Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| Atlanta, GA | 3 | Lead | Oct 2019 | |
| United States | 3 | Participant | Oct 2019 | |
| Chicago, IL | 2 | Participant | Apr 2021 | |
| Madison, WI | 1 | Lead | Apr 2021 | |
| Greenwich, CT | 1 | Participant | Apr 2021 | |
This data is available for Pro users. Sign up to see all 7 Gradient AI investors. Start Free Trial | ||||
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Start Free TrialAcquisitions by Gradient AI
Gradient AI has acquired 1 company to date.
Last acquisition by Gradient AI was on October 10th 2022. Gradient AI acquired Prognos Health (analytics unit) for undisclosed valuation.
Latest Acquisitions by Gradient AI
![](data:image/svg+xml,<svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 20 20"><rect fill="%23e5e7eb" width="20" height="20" rx="4"/></svg>){kind=small} Prognos Health (analytics unit) | |
| Description | Prognos Health's analytics unit is a New York City-based provider of healthcare data analytics services. The division leverages a repository of over 400 million patient records to deliver insights on treatment patterns, provider performance, and market access. Clients in pharmaceuticals and health systems use these services for real-world evidence generation and patient journey mapping. Launched as part of Prognos Health in 2011, the unit integrates claims, lab results, and social determinants data into actionable dashboards. |
| HQ Country | |
| HQ City | New York City, NY |
| Deal Date | 10 Oct 2022 |
| Valuation | undisclosed |
| EV/Revenue | |
| EV/EBITDA | |
This data is available for Pro users. Sign up to see all Gradient AI acquisitions and their M&A valuation multiples. Start Free Trial | |
Gradient AI Competitors
Gradient AI competitors include listed companies like AInnovation Technology and Coveo Solutions, and private ones like Tinybird, Exactera, IGNITE IMPULSE and FOTOhub.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| New York City, NY | Private | - | - | $240M | - | |
 China | Publicly listed | $226M | ($30M) | $240M | 0.8x | |
| New York City, NY | Private | - | - | $241M | - | |
| United States | Private | - | - | $237M | - | |
 Bydgoszcz | Private | - | - | $232M | - | |
 Canada | Publicly listed | $148M | ($25M) | $276M | 1.2x |
Gradient AI Public Comps
Gradient AI is still privately-owned, but its public comps include AInnovation Technology, Abeja, Coveo Solutions, Expert.ai, Appen, Vrain Solution, Selvas AI, User Local, Saltlux and Datasection.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $226M | ($30M) | 0.7x | 0.8x | (5.7x) | (4.6x) | |||
| $23M | $3M | 7.8x | 6.4x | 60.9x | - | |||
| $148M | ($25M) | 1.2x | 1.2x | (7.3x) | 107.6x | |||
| $53M | $5M | 4.0x | 4.3x | 39.9x | 53.8x | |||
| $231M | $9M | 0.7x | 0.6x | 16.9x | 7.2x | |||
| $21M | $6M | 14.5x | 11.5x | 49.0x | - | |||
| $84M | ($65K) | 2.6x | 3.3x | (3294.6x) | 19.8x | |||
| $34M | $15M | 2.7x | 2.8x | 6.1x | - | |||
This data is available for Pro users. Sign up to see all Gradient AI competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Gradient AI
| When was Gradient AI founded? | Gradient AI was founded in 2012. |
| Where is Gradient AI headquartered? | Gradient AI is headquartered in Boston, MA, United States. |
| Is Gradient AI publicly listed? | No, Gradient AI is a private, VC-backed company. |
| What is Gradient AI's valuation? | Gradient AI was last valued at $240M in its undisclosed-stage round in July 2024. |
| How much funding has Gradient AI raised? | Gradient AI has raised $123M across 5 funding rounds. |
| What was Gradient AI's last funding round? | Gradient AI's last funding round was a $56M Series C in July 2024, led by Centana Growth Partners. |
| Who are Gradient AI's investors? | Gradient AI's investors include Forté Ventures, MassMutual Ventures, Sandbox Insurtech Ventures, American Family Ventures, Stone Point Capital, BSC Capital and Centana Growth Partners. |
| Which companies are comparable to Gradient AI? | Companies comparable to Gradient AI include Tinybird, AInnovation Technology, Exactera, IGNITE IMPULSE, FOTOhub and Coveo Solutions. |
| How many companies has Gradient AI acquired? | Gradient AI has acquired 1 company, including Prognos Health (analytics unit). |
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