Minneapolis-based Slingshot Insurance has emerged from stealth with $27 million in seed funding, co-led by Rally Ventures and Skyward Group. The round also included participation from insurance industry veterans, including Jim Hays, who will join the company's board.
Led by co-founder and CEO Ethan Genteman, Slingshot is building an AI-native platform designed to make embedded insurance more accessible and economical. Embedded insurance allows consumers to purchase coverage directly within an existing transaction, such as protecting a flight booking, youth sports registration, or equipment rental.
The company aims to solve a fundamental challenge in the industry: the administrative costs of offering small insurance policies. With premiums sometimes as low as $25, traditional underwriting, reporting, and claims processes can make these programs difficult to operate profitably. Slingshot uses AI to automate workflows and connect insurance distributors with carriers, reducing the operational burden.
Slingshot's first customer and design partner is Vertical Insure, another Rally Ventures-backed company (also here in Minneapolis) that serves more than 750,000 customers.
Slingshot began operations in July 2026 and currently has a six-person team.