Coverwatch, a San Francisco insurance brokerage built around AI, announced a $4.5m pre-seed round on 23 July 2026. CoFound and Restive Ventures led the round, according to Insurance Journal.
Manresa Ventures, Kfund, Liquid 2 Ventures, Movi Collective, Prompt Capital and a group of insurance angels also invested, CoFound said in its announcement. No valuation was disclosed.
“Coverwatch saves clients upwards of 40% a year in annual insurance premiums.”Jordan Wan, CoFound newsletter
What Coverwatch does
CoFound describes the company as an AI-native specialty insurance brokerage built to serve complex industries, combining AI with deep integrations into industry systems of record. Insurance Journal described it as an AI-native commercial brokerage.
Its clients include homeowner associations, venture-backed technology companies and e-commerce and consumer packaged goods companies. CoFound said clients save upwards of 40% a year on their annual insurance premiums, a claim made by the investor rather than independently checked. Customers were not named.
Licences
Coverwatch is licensed in 17 states, Insurance Journal reported, and expects to be licensed in all 48 continental US states by the third quarter, though the article did not specify the year.
The founders
CoFound named three founders. Kevin Wu previously founded a healthcare startup that helped small businesses obtain better supplier pricing. Miquel Llobet is a former Y Combinator founder who ran a homeowner association roll-up startup. Wilmer Yan was described as the youngest AI staff engineer, who helped scale a Sydney-based healthcare unicorn.
The company's headcount was not stated. CoFound said the founding team spent months working closely with it, iterating rapidly toward product-market fit, and that the savings are real and the process extremely fast.
What the money is for
Insurance Journal said the funds will accelerate product development and expand the team. No further detail on spending was given in either report, and the round is described as the company's inception round by CoFound and as a pre-seed by Insurance Journal.
How Coverwatch makes money
According to the company's release, traditional brokers earn commissions tied to premiums, which creates an incentive to steer clients to higher-priced cover. It cited figures that US companies spent more than $400bn on commercial premiums in 2025, with more than $40bn going to broker commissions. Coverwatch instead charges a flat fee.
Its platform evaluates risk, closes coverage gaps and lowers premiums. The AI automates policy analysis, benchmarking and servicing, and its core technology is an information extraction pipeline that maps each client's business to the right underwriting questions. It solicits bids from more than 50 carriers per quote, with quotes returned in 24 to 48 hours, and says it cuts clients' insurance costs by 20% to 40% on average.
Traction
The company said homeowner associations are its initial and fastest-growing market, followed by venture-backed technology companies, including Pear, a venture from Lime co-founder Brad Bao, and scaling consumer brands. The team has six people and plans to roughly double headcount by the end of 2026, and revenue has roughly doubled each month on average since the second quarter of 2026, mostly through word of mouth. These figures come from the company.
Llobet is chief executive, Wu is chief operating officer and Yan is chief technology officer. Llobet said commercial insurance was ripe for AI transformation and that he felt the pain firsthand running an HOA management company. Jordan Wan of CoFound said Coverwatch is building the system of intelligence for commercial insurance.
Company website: coverwatch.com