Root Insurance Revenue, Valuation, Funding & Investors
Root Insurance is valued at $3.6B as of August 2019.
Last Root Insurance valuation
$3.6B
Series E · Aug 2019
Last Root Insurance funding round
$350M
Series E · Aug 2019
Root Insurance revenue
$43M
Series D · Aug 2018
Key investors in Root Insurance
Ribbit Capital
Redpoint
Scale Venture Partners
Drive Capital
Tiger Global
Silicon Valley Bank
About Root Insurance
Root Insurance is a Columbus, Ohio-headquartered insurtech that delivers auto and renters coverage through a mobile app assessing driving behavior via smartphone telemetry. Policies adjust premiums based on metrics like hard braking events, acceleration patterns, and nighttime driving frequency. The company underwrites in 34 U.S. states and partners with Progressive for reinsurance. Launched in 2015, Root Insurance expanded to pet insurance in 2023.
Founded
2015
HQ
Columbus, OHWebsite
Status
Privately held
Customer focus
B2C
Revenue model
Product sales
Revenue
$43M (Aug 2018)
Valuation
$3.6B (Aug 2019)
Root Insurance Valuation
Root Insurance is currently valued at $3.6B, based on its Series E in August 2019.
The $350M round was led by Coatue and DST Global, with participation from Redpoint, Scale Venture Partners, Ribbit Capital, Tiger Global and Drive Capital.
Root Insurance's valuation has grown 3.6x from $1B at its Series D in August 2018 to $3.6B in August 2019, across 2 priced rounds.
Root Insurance valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Aug 2019 | Series E | $3.6B | - |
| Aug 2018 | Series D | $1B | 23.3x |
Root Insurance Revenue
Root Insurance's latest recorded revenue is $43M, as of its Series D in August 2018. At a $1B valuation, that implies a 23.3x revenue multiple.
Root Insurance revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Aug 2018 | $43M | $1B | 23.3x | Series D |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Root Insurance Funding History
Root Insurance has raised a total of $528M across 5 funding rounds.
Root Insurance's first fundraising round was a $5M Series A in October 2016. The most recent completed round was a $350M Series E in August 2019.
Root Insurance funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Aug 2019 | Series E | Coatue (lead); DST Global (lead); Redpoint; Scale Venture Partners; Ribbit Capital; Tiger Global; Drive Capital | $350M | $3.6B | Root Insurance, an Ohio-based car insurance startup, uses a smartphone app to assess driving behavior—such as braking, route regularity, and turn speed—to determine premiums for safe drivers, potentially saving up to 52% compared to traditional insurers that rely on age, location, and mileage. The company raised $350 million in its Series E funding round in August 2019, led by new investors Coatue Management and DST Global, with participation from existing backers including Tiger Global Management, Ribbit Capital, Redpoint, and Drive Capital. This round brought Root's valuation to $3.65 billion and marked the largest VC-backed insurance startup funding in 2019, surpassing Lemonade's $480 million total for the year. Prior to the Series E, Root had raised $177.5 million, including a $100 million Series D in August 2018 led by Tiger Global. The new capital was aimed at accelerating growth amid rapid expansion, with insurance premiums reaching $133.4 million in the first half of 2019—12 times higher than the same period in 2018—though it reported $126.6 million in losses over that timeframe. Unlike Lemonade, which focuses on renters and homeowners insurance using AI for premiums, Root targets personal auto insurance. Root went on to raise additional funds post-2019, reaching over $1 billion in total funding across seven rounds before going public. The company has since shown revenue growth, reporting $1.17 billion in 2024 and progressing toward profitability with positive adjusted EBITDA in recent years, while facing challenges like competitive pressures in auto insurance. |
| Aug 2018 | Series D | Tiger Global (lead); Redpoint; Scale Venture Partners; Ribbit Capital | $100M | $1B | Root Insurance, now Root, Inc. (Nasdaq: ROOT), is a technology-driven personal auto insurance company using telematics and data science for personalized pricing. In August 2018, it raised $100 million in a Series D round led by Tiger Global Management, with participation from Redpoint, Ribbit Capital, and Scale Venture Partners, to accelerate growth and invest in new technologies. For the fiscal year ending December 31, 2018, Root reported revenue of $43.3 million, marking its early stage as a startup prior to significant scaling. This figure reflects the company's initial traction in the competitive auto insurance market, where it differentiated through app-based driving behavior tracking. Root went public in 2020 and has since grown substantially, with 2019 revenue at $290.2 million and continued expansion. The company faced challenges in later years but achieved profitability strides by 2025. |
| Mar 2018 | Series C | Redpoint (lead); Scale Venture Partners; Ribbit Capital; Silicon Valley Bank | $51M | - | Root Insurance is an Ohio-based auto insurance technology company founded in 2015 that uses smartphone technology and artificial intelligence to provide personalized insurance quotes based on individual driving behavior. The company's proprietary mobile app analyzes factors such as hard brakes, aggressive turns, and mileage to generate customized rates, allowing drivers to save more than 50 percent on policies compared to traditional carriers. The company raised $51 million in Series C funding led by Redpoint Ventures with participation from Scale Venture Partners, Ribbit Capital, and Silicon Valley Bank, announced March 2018. The capital was designated to expand operations into additional states and invest in technology to enhance customer experience. At the time of the Series C round, Root was operating in 12 U.S. states and had ambitious plans to expand nationally by 2019. The company subsequently raised a $100 million Series D in August 2018 led by Tiger Global Management, which valued the company at $1 billion and brought total funding to $177.5 million. By September 2019, Root had raised a $350 million Series E at a $3.65 billion valuation, expanded to 29 states, and wrote more than $187 million in insurance premiums in the first half of 2019, representing 824% growth year-over-year. |
| Jun 2017 | Series B | Ribbit Capital (lead); Silicon Valley Bank; Drive Capital | $22M | - | Root Insurance raised $21.5 million in its Series B round in June 2017, led by Ribbit Capital, with participation from previous investors Drive Capital and Silicon Valley Bank. The company was an app-based auto insurance platform founded in 2015 that used a mobile-first, data-driven approach to underwriting, gathering driving data through smartphone assessments during a test-driving period while factoring in credit scores and demographic information. At the time of its Series B, Root had expanded from 12 to 20 U.S. states and reported a more than 4,500 percent year-over-year increase in direct written premiums in the first half of 2018, growing from just under $4 million in direct premiums for all of 2017 to nearly $23 million in the first six months of 2018. The company planned to use the capital to expand market reach and enhance its technology platform, with ambitions to operate in all 50 states and Washington D.C. by the end of 2019. While the post-money valuation at the Series B round was not publicly disclosed at the time, Root later achieved unicorn status ($1 billion valuation) with its Series D round of $100 million in late 2018. |
| Oct 2016 | Series A | Drive Capital (lead) | $5M | - | Root Insurance raised $5 million in its Series A round in October 2016, led by Drive Capital. The funding supported development and launch of its app-based car insurance platform that tracks driving behavior to offer personalized rates. The company had secured $3 million in initial funding from Drive Capital earlier in 2016, followed by an additional $4 million, along with a debt facility from Silicon Valley Bank. Root launched auto insurance services in Ohio around this time and planned expansion to additional states. |
Who has invested in Root Insurance?
8 investors have backed Root Insurance across its funding rounds, including Ribbit Capital, Redpoint, Scale Venture Partners, Drive Capital, Tiger Global and Silicon Valley Bank.
Lead investors include Coatue, DST Global, Tiger Global, Redpoint, Ribbit Capital and 1 other investor.
Root Insurance Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| San Francisco, CA | 4 | Lead | Jun 2017 | |
| San Francisco, CA | 3 | Lead | Mar 2018 | |
| San Francisco, CA | 3 | Participant | Mar 2018 | |
| Columbus, OH | 3 | Lead | Oct 2016 | |
| New York City, NY | 2 | Lead | Aug 2018 | |
| San Jose, CA | 2 | Participant | Jun 2017 | |
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Start Free TrialInvestments by Root Insurance
Root Insurance has invested in 1 company to date.
Latest investment by Root Insurance was on December 1st 2021. Root Insurance invested in Empora Title in their $22M Series A round.
Latest Investments by Root Insurance
| Description | Empora Title is a tech-enabled title insurance company launched in 2023, headquartered in Austin, Texas, providing digital closing services for real estate investors nationwide. The platform offers instant title searches, lien reports, and e-recordings compliant with ALTA standards. Targeting single-family rentals, it integrates with proptech like Roofstock. | Empora Title is a tech-enabled title insurance company launched in 2023, headquartered in Austin, Texas, providing digital closing services for real estate investors nationwide. The platform offers instant title searches, lien reports, and e-recordings compliant with ALTA standards. Targeting single-family rentals, it integrates with proptech like Roofstock. |
| HQ Country | | |
| HQ City | Columbus, OH | Columbus, OH |
| Deal Date | 1 Dec 2021 | 1 Dec 2020 |
| Round | Series A | Seed |
| Raised | $22M | $5M |
| Investors | Background Capital; SciFi VC; Caffeinated Capital | SciFi VC; OpenDoor Venture Capital |
| Valuation | undisclosed | undisclosed |
| EV/Revenue | ||
| EV/EBITDA | ||
This data is available for Pro users. Sign up to see all Root Insurance investments and their VC round multiples. Start Free Trial | ||
Root Insurance Competitors
Root Insurance competitors include listed companies like Lemonade, Clover Health and Ethos Insurance, and private ones like wefox, Marshmallow and Ominimo.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| United States | Publicly listed | $738M | ($146M) | $3.8B | 3.5x | |
 Berlin | Private | $850M | - | $4.6B | 5.4x | |
| United States | Publicly listed | $1.9B | ($84M) | $2.4B | 0.8x | |
| United States | Publicly listed | $388M | $79M | $2.3B | 3.4x | |
 United Kingdom | Private | $500M | - | $2B | 4.0x | |
 Hungary | Private | $350M | - | $1.6B | 4.6x |
Root Insurance Public Comps
Root Insurance is still privately-owned, but its public comps include Alm Brand, Palomar Holdings, Lemonade, Old Mutual, Qualitas, Hamilton Insurance Group, Star Health and Allied, Genworth Financial, CCC Intelligent Solutions and New India Assurance.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $2.1B | $303M | 1.8x | 2.0x | 12.5x | - | |||
| $876M | $263M | 4.4x | 1.6x | 14.8x | - | |||
| $738M | ($146M) | 5.1x | 3.5x | (25.9x) | (55.1x) | |||
| $17B | $1.6B | 0.2x | 1.0x | 1.8x | 4.6x | |||
| $4.7B | $456M | 0.7x | 0.7x | 7.5x | 14.3x | |||
| $3B | $861M | 1.0x | 0.9x | 3.5x | 4.2x | |||
| $1.9B | $93M | 1.8x | 1.6x | 36.8x | (265.0x) | |||
| $7.1B | $538M | 0.6x | 0.6x | 8.2x | - | |||
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Common questions about Root Insurance
| When was Root Insurance founded? | Root Insurance was founded in 2015. |
| Where is Root Insurance headquartered? | Root Insurance is headquartered in Columbus, OH, United States. |
| Is Root Insurance publicly listed? | No, Root Insurance is a private, VC-backed company. |
| What is Root Insurance's valuation? | Root Insurance was last valued at $3.6B in its Series E in August 2019. |
| How much funding has Root Insurance raised? | Root Insurance has raised $528M across 5 funding rounds. |
| What was Root Insurance's last funding round? | Root Insurance's last funding round was a $350M Series E in August 2019, led by Coatue and DST Global. |
| Who are Root Insurance's investors? | Root Insurance's investors include Ribbit Capital, Redpoint, Scale Venture Partners, Drive Capital, Tiger Global, Silicon Valley Bank, Coatue and DST Global. |
| What is Root Insurance's revenue? | Root Insurance's latest recorded revenue is $43M (August 2018). |
| What is Root Insurance's revenue multiple? | Root Insurance's latest valuation implies a 23.3x revenue multiple ($1B valuation on $43M of revenue). |
| Which companies are comparable to Root Insurance? | Companies comparable to Root Insurance include Lemonade, wefox, Clover Health, Ethos Insurance, Marshmallow and Ominimo. |
| How many companies has Root Insurance invested in? | Root Insurance has invested in 1 company, including Empora Title. |
| What was Root Insurance's last investment? | In December 2021, Root Insurance invested in Empora Title's $22M Series A alongside Background Capital, SciFi VC and Caffeinated Capital. |
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