Shepherd Secures $42 Million in Series B Funding to Revolutionize Insurance for AI Infrastructure Development

In a bold move to redefine commercial insurance, Shepherd, an innovative player in the insurance tech industry, announced a significant $42 million Series B funding round on March 24, 2026. Led by Intact Private Capital, this funding was also supported by key investors such as Spark Capital and Costanoa Ventures. This latest capital infusion marks a substantial growth in Shepherd's financial backing, bringing the total raised to $67 million.

The last two years have seen Shepherd experience remarkable growth, with its revenue increasing by more than seven times. This surge is backed by over 1,500 policies issued, securing a staggering project value exceeding $400 billion. The clients under this insurance umbrella include prominent players in AI, from industry-leading AI labs and chip manufacturers to construction and energy development firms.

A New Era for AI Infrastructure Insurance

The boom in AI technology has created an urgent need for innovative insurance solutions that can keep pace with the rapid construction of data centers and other critical infrastructure. Traditional insurance models struggle to provide the swift service required, often leaving contractors waiting weeks for quotes and approvals. Shepherd's unique AI-powered underwriting platform addresses this challenge by delivering pricing quotes in mere minutes.

Utilizing real-time data from various construction technology partners, including Procore, Autodesk, and DroneDeploy, Shepherd’s platform provides instant feedback loops that dynamically assess project risks as they evolve. Instead of relying on outdated and static data, Shepherd actively tracks metrics such as incident records, quality inspection rates, and overall job site conditions, blending comprehensive insights into its underwriting processes.

Behavior-Based Pricing: The Future of Insurance

Shepherd has also introduced a groundbreaking program dubbed Shepherd Savings, which represents a paradigm shift in how commercial risk is appraised. Unlike traditional insurance approaches that often rely on demographic information, Shepherd Savings utilizes digital data derived from construction practices. Contractors who actively engage with advanced construction technology receive immediate incentives reflected in their insurance pricing.

Justin Levine, CEO and Co-Founder of Shepherd, emphasizes that prudent investment in technology should be recognized and rewarded. “The future of commercial insurance is behavior-based,” he stated. This not only enhances safety on job sites but also enables a more precise risk-profile assessment that rewards best practices among builders.

Toward Autonomous Underwriting

Looking ahead, Shepherd is ambitiously pursuing fully autonomous underwriting, potentially revolutionizing the insurance sector. By leveraging artificial intelligence to streamline the entire underwriting process, Shepherd aims to enable underwriters to focus on higher-level strategies and account management, rather than administrative tasks.

Mo Mahallawy, CTO and Co-Founder, explained the vision: “We are closing in on the first fully agentic submission in commercial insurance. No human intervention until the last mile.” This shift promises to dramatically enhance efficiency within the sector, establishing Shepherd as a frontrunner.

Strong Backing and Future Prospects

The funding round led by Intact Private Capital showcases a strong endorsement from one of the world's largest insurance organizations, marking their confidence in Shepherd’s innovative approach to transforming the insurance landscape. Investors believe Shepherd's AI-centric model positions the company as a pivotal participant in the ongoing evolution of the insurance industry.

As the AI infrastructure continues to expand dramatically, Shepherd stands at the forefront of this disruption, ready to tackle both the opportunities and challenges that arise. With a vision to reshape how commercial insurance functions, Shepherd is poised not only to facilitate the growth of AI but also to redefine risk from the ground up, ensuring builders and operators have the support they need to succeed.

For more information about Shepherd's cutting-edge insurance solutions, please visit www.shepherdinsurance.com.

About Shepherd

Shepherd is a pioneering AI-native insurance technology platform focused on simplifying risk for those constructing and managing our physical environment. Leveraging proprietary AI technology alongside real-time data, Shepherd provides exceptionally fast and intelligent commercial insurance tailored for the demands of today’s evolving infrastructure landscape.

About Intact Private Capital

Intact Private Capital, the investment branch of Intact Financial Corporation, is dedicated to partnering with innovative founders and supporting them throughout their growth journey. Intact operates across multiple regions, providing property and casualty insurance while continually seeking opportunities to expand and elevate the insurance industry.