Exclusive: Workers comp insurtech CompScience raises $27.6 million in Sands Capital-led Series B

By James Thaler

Feb 26 - (The Insurer) - Workers compensation-focused insurtech MGA CompScience has raised $27.6 million in a Series B funding round led by Sands Capital and supported by Four More Capital, Working Capital and Valor Equity Partners that is aimed at expanding its market reach.

San Francisco-based CompScience was launched in 2023 by former Facebook executive Josh Butler and leverages an AI platform to identify risks and predict incidents before they become claims, with an aim to create safer workplaces.

The tech firm started out as Kinetic Eye, an AI software company serving the logistics and manufacturing industries that was founded by Butler in 2019. It then rebranded as CompScience and repositioned to an MGA.

The insurtech claims its software allows for the detection of risk at logistics and manufacturing facilities within a far shorter time span than previously.

It utilises the data and lessons learned, as well as the platform itself, in its workers’ compensation insurance offering.

The MGA integrates with insureds’ existing camera systems as a strategy for eliminating the need for additional equipment and physical inspections, with the goal of making AI-driven safety solutions more accessible to businesses.

The company’s Intelligent Safety Platform uses AI-powered analytics to assess risks and provide safety recommendations, aiming to help businesses lower injury probabilities and reduce workers' compensation costs.

In addition to protecting employees and businesses, CompScience also says it empowers brokers with AI-powered risk mitigation tools, enabling them to proactively address workplace hazards, reduce claims and lower costs.

The insurtech also aims to strengthen brokers in their role as strategic advisors by using CompScience’s technology to enhance their competitive edge and foster long-term client loyalty.

It currently works with more than 200 enterprise clients and says it has helped reduce workplace incidents by 35%, while improving compliance with safety regulations, and has driven over $30 million in savings that it claims fuel growth and innovation.

Valor and Four More previously invested in CompScience’s $10 million Series A funding round that was announced in July 2023, alongside Henry Crown and Company.

Valor is a prominent Silicon Valley investor whose other investments include insurtechs Coalition, AgentSync and Nirvana, as well as tech giants Tesla, SpaceX and Anduril.

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The Series A announcement comes after CompScience in August 2022 closed a $6 million seed round, with investors including Working Capital Fund, Preface Ventures, Hustle Fund and Pathbreaker Ventures, among others.

The proceeds from the latest fundraise will be used to accelerate product innovation, scale operations and expand market reach to help more organisations prevent serious injuries and fatalities.

A spokesperson for CompScience confirmed the details of the fundraise in a statement to The Insurer.

“This funding is a testament to the value we’re delivering to organizations that are committed to protecting their workforce,” said Butler.

“With this investment, we will make AI-powered safety available to millions of workers and save thousands of lives,” he added.

Chris Eng, principal at Sands Capital, said CompScience is “redefining workplace safety with cutting-edge technology”.

“We’re excited to support their mission to prevent serious injuries and fatalities across industries,” Eng said.

The insurtech MGA is supported by paper from Nationwide, as well as additional capacity backing from Swiss Re.

“By delivering measurable benefits across multiple stakeholders, CompScience enables workers to avoid preventable injuries, helps brokers strengthen client relationships and credibility, and allows businesses to turn risk management into a competitive advantage,” the company said in a statement.

“This funding marks a new chapter in CompScience’s mission to create safer, more efficient workplaces worldwide,” it continued.

“With this investment, CompScience will enhance its AI capabilities, expand its global team, deepen insurer partnerships, and extend its reach into new industries – setting a new standard for workplace safety and risk mitigation,” the firm added.

CompScience’s fundraise comes as insurtech funding conditions appear to be thawing, with a number of meaningful raises underway as well as already announced.

The Insurer broke the news earlier this month that commercial trucking insurtech HDVI Group had raised a $40 million inside round led by Weatherford Capital, Munich Re Ventures, 8VC and Autotech, in addition to breaking the news of Vouch’s Series D led by Allegis Capital.

Last month, The Insurer reported that homeowners insurtech Kin is working on its latest fundraise aimed at valuing the firm at more than $2 billion, a deal that is expected to fuel the Sean Harper-led firm’s expansion into additional states after hitting $500 million in premium in 2024.