Insurtech startup Faye announces $50M capital raise

Travel insurance app Faye announced Wednesday it secured a $50 million capital raise, the company said. The round was led by Seattle-based venture capital firm Madrona with participation from BRM and existing investors Portage, F2 Venture Capital, Viola Ventures and Lumir Ventures. The infusion brings Faye's total funding to $100 million since its founding in 2022 and marks its largest round to date. CEO and co-founder Elad Schaffer said the funds will be used for continued expansion into AI, growth beyond the U.S. market and advancements in claims management and user experience. Schaffer said the company reached $100 million in annualized revenue last year and serves customers in the millions. The raise closed a few weeks ago after a quick turnaround. Madrona partner Chris Picardo will join Faye's board while Madrona managing director Steve Singh will serve as a board observer. By year end, the company expects AI to resolve more than half of all claims autonomously. Faye also plans to expand its Wallet feature and services to customers outside the U.S. Founded in 2019 in Tel Aviv, Faye is headquartered in Richmond with about 180 employees overall and 80 based locally. The company previously raised $31 million in 2024, $10 million in 2022 and $8 million in 2021.