Root Insurance Revenue, Valuation, Funding & Investors
Root Insurance is valued at $7.1B as of October 2020, a 16.4x revenue multiple. Root Insurance revenue was $432M, as disclosed with its latest round.
Last Root Insurance valuation
$7.1B
Undisclosed stage · Oct 2020
Last Root Insurance funding round
$500M
Undisclosed stage · Oct 2020
Root Insurance revenue
$432M
Undisclosed stage · Oct 2020
Key investors in Root Insurance
Ribbit Capital
Redpoint
Scale Venture Partners
Drive Capital
Tiger Global
Silicon Valley Bank
About Root Insurance
Root Insurance, operating as Root, Inc., is an insurtech headquartered in Columbus, Ohio, founded in March 2015 by Alex Timm and Dan Manges. It sells car, renters and homeowners insurance, using smartphone telematics to price auto policies on driving behaviour, and increasingly concentrates on embedded insurance sold through partners; its largest markets are Texas, Georgia and Colorado. The company reported revenue of $455 million in 2024, 341,764 policies in force at 31 December 2023 and about 700 employees. Root priced its initial public offering at $27.00 per share on 27 October 2020 and began trading on Nasdaq under the ticker ROOT, with funds affiliated with Dragoneer and Silver Lake each buying $250 million of shares in concurrent private placements. In August 2021 Carvana invested $126 million for a 5% stake as part of a partnership.
Founded
2015
HQ
Columbus, OHWebsite
Status
Publicly listed
Customer focus
B2C
Revenue model
Product sales
Revenue
$432M (Oct 2020)
Valuation
$7.1B (Oct 2020)
Root Insurance Valuation
Root Insurance is currently valued at $7.1B, based on its undisclosed-stage round in October 2020. Read the announcement ↗
The $500M round was led by Dragoneer and Silver Lake.
Root Insurance's valuation has grown 7.1x from $1B at its Series D in August 2018 to $7.1B in October 2020, across 3 priced rounds.
Root Insurance valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Oct 2020 | Undisclosed stage | $7.1B | 16.4x |
| Aug 2019 | Series E | $3.6B | - |
| Aug 2018 | Series D | $1B | 23.3x |
Root Insurance Revenue
Root Insurance's latest recorded revenue is $432M, as of its undisclosed-stage round in October 2020. At a $7.1B valuation, that implies a 16.4x revenue multiple.
Revenue grew from $43M in August 2018 to $432M in October 2020, while the revenue multiple moved from 23.3x to 16.4x.
Root Insurance revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Oct 2020 | $432M | $7.1B | 16.4x | Undisclosed 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 $1B across 6 funding rounds.
Root Insurance's first fundraising round was a $5M Series A in October 2016. The most recent completed round was a $500M undisclosed-stage round in October 2020.
Root Insurance funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Oct 2020 | Undisclosed stage | Dragoneer (lead); Silver Lake (lead) | $500M | $7.1B | Root is a mobile-based auto insurer founded in 2015 that uses technology and individual performance data to assess risk, offering a user-friendly mobile-first engagement strategy to challenge the traditional insurance model. In October 2020, Root completed its IPO on the Nasdaq under symbol ROOT, pricing 24.2 million shares at $27 per share (above its original $22–$25 target range) and raising approximately $655 million in the main offering. Concurrent with the IPO, Dragoneer Investment Group and Silver Lake each invested $250 million in private placements at the IPO price, bringing total capital raised to approximately $1.15 billion across both transactions. Root's post-money valuation at IPO pricing was approximately $7.1 billion on a fully diluted basis, according to Renaissance Capital. For the 12 months ended June 30, 2020, Root reported $432 million in revenue, demonstrating strong growth momentum—the company had seen revenues more than double from the first half of 2019 to the first half of 2020. The company's direct written premium at Q3 2020 annualized to approximately $655.6 million, reflecting its rapid expansion in the auto insurance market. |
| 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?
10 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 Dragoneer, Silver Lake, Coatue, DST Global, Tiger Global and 3 other investors.
Root Insurance Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| Palo Alto, 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 | |
| San Francisco, CA | 1 | Lead | Oct 2020 | |
| San Francisco, CA | 1 | Lead | Oct 2020 | |
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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 | ||
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Root Insurance Competitors
Root Insurance competitors include listed companies like Oscar Health and Baige Online, and private ones like wefox, Marshmallow, Ominimo and Branch.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| United States | Publicly listed | $12B | ($391M) | $9.5B | 0.5x | |
 Berlin | Private | $350M | - | $4.5B | 12.9x | |
 United Kingdom | Private | $500M | - | $2B | 4.0x | |
 Hungary | Private | $350M | - | $1.6B | 4.6x | |
| Columbus, OH | Private | - | - | $1.1B | - | |
 China | Publicly listed | $184M | ($5M) | $5.1B | - |
Root Insurance Public Comps
Root Insurance is still privately-owned, but its public comps include First American Financial, ICICI Prudential Life, Sinar Mas Multiartha, China Re, AXIS Capital, Lincoln National, DB Insurance, Clal Insurance, Grupo SURA and Definity Financial.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $7.4B | $1.2B | 0.9x | 0.9x | 5.7x | - | |||
| $6.6B | $231M | 1.0x | 0.8x | 29.2x | 32.9x | |||
| $2B | $275M | 3.8x | - | 27.5x | - | |||
| $17B | $2.2B | 0.4x | 0.4x | 3.0x | - | |||
| $6.4B | $1.3B | 1.2x | 1.1x | 5.7x | - | |||
| $18B | $1.7B | 0.4x | 0.4x | 4.5x | 3.4x | |||
| $14B | $2.4B | 0.6x | 7.9x | 3.2x | - | |||
| $7.2B | $1.5B | 0.9x | 2.1x | 4.3x | - | |||
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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? | Yes, Root Insurance is a public company. |
| What is Root Insurance's valuation? | Root Insurance was last valued at $7.1B in its undisclosed-stage round in October 2020. |
| How much funding has Root Insurance raised? | Root Insurance has raised $1B across 6 funding rounds. |
| What was Root Insurance's last funding round? | Root Insurance's last funding round was a $500M undisclosed-stage round in October 2020, led by Dragoneer and Silver Lake. |
| Who are Root Insurance's investors? | Root Insurance's investors include Ribbit Capital, Redpoint, Scale Venture Partners, Drive Capital, Tiger Global, Silicon Valley Bank, Dragoneer, Silver Lake, Coatue and DST Global. |
| What is Root Insurance's revenue? | Root Insurance's latest recorded revenue is $432M (October 2020). |
| What is Root Insurance's revenue multiple? | Root Insurance's latest valuation implies a 16.4x revenue multiple ($7.1B valuation on $432M of revenue). |
| Which companies are comparable to Root Insurance? | Companies comparable to Root Insurance include Oscar Health, wefox, Marshmallow, Ominimo, Branch and Baige Online. |
| 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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