The funding round was led by Valor Equity Partners with participation from Susa Ventures and Felicis Ventures.
Chief Executive Tanner Hackett said the new funding would help Counterpart scale its digital platform, which is used by brokers offering management liability coverage that shields small businesses from the costs of litigation against directors and officers.
Counterpart said its platform benefits brokers and insurance buyers by turning data on risk areas affecting small businesses into insights for the businesses themselves to give owners insight into what steps should be taken to avoid costly litigation.
“We spent the last 12 months deepening our understanding of this product in collaboration with the largest wholesale brokers in the country,” said Hackett, who founded the company in 2019.
“Counterpart is the first-of-its-kind, data-driven platform that gives brokers, and the small businesses they serve, the coverage and tools to address the acute risks of the 21st century workplace,” Tanner said in a statement.
The company said it plans to hire new staff and partner with new brokers to make its products available to more customers.