Root operates as a digital-first auto insurance platform that leverages telematics and mobile technology to assess driving behavior and offer personalized insurance pricing. The platform also provides renters and homeowners insurance, offering a unified, app-driven policy management experience for consumers.
The company simplifies claims processing, reduces premiums through behavior-based risk assessment, and streamlines underwriting using data-driven automation.
What Is Root and What Does It Do?
Root, founded in 2015 by Dan Manges and Alexander Timm, is headquartered in Columbus, United States. It operates as an online insurance company specializing in auto, renters, and homeowners insurance through a mobile-first, telematics-driven platform.
Root employs 1,571 employees, offering app-based quotes, claims management, policy adjustments, and behavioral risk analysis to personalize premiums.
The company focuses on eliminating traditional insurance inefficiencies through data science, machine learning, and user-friendly digital experiences, making coverage more affordable and transparent.
How Much Funding Has Root Raised?
1. Series E
- Amount Raised: $360M
- Date: August 2019
- Lead Investors: Coatue, DST Global Partners, Redpoint Ventures, Tiger Global Management, Ribbit Capital, Scale Venture Partners, Drive Capital
- Motivation: To accelerate nationwide expansion, enhance underwriting models, and strengthen Root’s telematics-based insurance platform.
2. Series D
- Amount Raised: $100M
- Date: August 2018
- Lead Investors: Tiger Global Management, Redpoint Ventures, Ribbit Capital, Scale Venture Partners
- Motivation: To boost growth, expand into new states, and increase marketing investment.
3. Series C
- Amount Raised: $51M
- Date: March 2018
- Lead Investors: Redpoint Ventures, Scale Venture Partners, Ribbit Capital, SVB
- Motivation: To scale operations, enhance mobile underwriting, and increase product development efforts.
Total Funding Raised: $540 Million
Latest Funding Date: August 2019
Key Investors
1. Tiger Global Management
- Details: A global investment firm active in both private and public markets, known for backing high-growth technology and consumer companies.
- Investment Focus Areas: Internet, software, fintech, consumer.
- Notable Investments: Stripe, Facebook, LinkedIn, Flipkart.
2. DST Global Partners
- Details: A leading investment firm focused on late-stage technology companies with strong global potential.
- Investment Focus Areas: Internet, software, digital services.
- Notable Investments: Airbnb, DoorDash, Nubank.
3. Redpoint Ventures
- Details: A venture capital firm backing early and growth-stage technology disruptors across multiple categories.
- Investment Focus Areas: SaaS, consumer apps, mobility, AI.
- Notable Investments: Stripe, Snowflake, Twilio.
4. Coatue Management
- Details: A technology-focused investment firm bringing both venture and hedge fund expertise to scaling companies.
- Investment Focus Areas: Enterprise tech, fintech, consumer internet.
- Notable Investments: DoorDash, TikTok, Snap.
5. Ribbit Capital
- Details: A global VC firm specializing in transforming financial services through technology.
- Investment Focus Areas: Fintech, insurance, and lending.
- Notable Investments: Robinhood, Coinbase, Affirm.
Where Is Root’s Headquarters?
Root is headquartered in Columbus, Ohio, a central U.S. hub known for its strong insurance talent pool, regulatory landscape, and cost-efficient operations, making it ideal for scaling digital-first insurance companies.
What’s Next for Root?
Root continues advancing in telematics-based insurance, expanding partnerships, and optimizing underwriting through machine learning. With significant venture backing and strong market recognition, the company is focused on refining profitability, expanding renter and homeowner segments, and enhancing app-based automation to deliver fully digital, customizable insurance experiences.
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