Cover Whale raises $27.5 million

Trucking insurance startup Cover Whale announced funding of $27.5 million in debt and equity from investment funds managed by Morgan Stanley Expansion Capital. The funding round, which also had existing debt investors convert into the Series A preferred, will support Cover Whale’s growth.

Founded in 2019, Cover Whale operates as an MGA and it claims to have more than 15,000 policyholders. The startup says that it ended 2023 with $225 million in written premiums.

“Cover Whale was built from the ground up to transform commercial auto insurance with technology at our core. We believe this investment from Morgan Stanley Expansion Capital will support our continuing mission to deliver the industry’s leading trucking insurance experience, building on the positive impact we’ve already made for our agents, drivers, and the general motoring public.” – Dan Abrahamsen, CEO of Cover Whale.

“We believe Cover Whale is a rare instance where the team has built a large-scale insurtech MGA and achieved consistent profitability while remaining capital efficient. We are looking forward to partnering with the team as they continue to grow the platform and pursue new avenues of growth.” – Nick Nocito, Executive Director of Morgan Stanley Expansion Capital.