Notch, an artificial intelligence platform focused on regulated industries, said this week that it has raised $30 million in Series A funding, bringing its total funding to $45 million.
The round was led by Headline and included Lightspeed Venture Partners, Jibe Ventures, Illuminate Financial and Phoenix Insurance.
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Notch founders, from left: CEO Rafael Broshi, CPO Elul Yaakobi, CTO Yuval Peled
(Photo: Liron Weisman)
The company said the new funding will help support its expansion in the United States and further development of what it describes as an AI operating system for regulated industries, with an initial focus on global insurers, large brokers and financial institutions.
Notch said its platform uses AI agents to automate operational workflows from start to finish. Those functions include conversational tasks such as handling broker, partner and policyholder interactions, including policy servicing requests, document and data collection, structured intake for claims and underwriting submissions, and inquiries that require action across internal systems.
The platform also serves as a co-pilot for internal operations teams, the company said, allowing adjusters, underwriters and service representatives to search long claims files, policy documents and submission materials in natural language and receive structured answers tied to source data, along with summaries of complex files and submissions.
On the back-office side, Notch said its software automates high-volume operational work by ingesting documents and communications, extracting structured data, classifying and routing submissions or claims, and flagging time-sensitive requests for the appropriate teams.
The company was founded in 2021 as a specialty insurer, and said its early experience highlighted the difficulty of scaling in an industry where decisions must be compliant, traceable and accurate. According to the company, that led it to build internal AI systems designed to meet insurance-sector requirements for control, transparency and reliability before turning the technology into a standalone platform for other regulated businesses.
Over the past 12 months, Notch said, its annual recurring revenue grew 12-fold, with adoption by global insurers, financial services firms and other organizations seeking AI tools that can carry out complex operational workflows end-to-end.
“The insurance industry is beginning to understand the full potential of agentic AI,” co-founder and CEO Rafael Broshi said in a statement. He said much of the market remains focused on point solutions that automate individual tasks, creating fragmented systems and technical debt, while the larger opportunity lies in connecting broker and policyholder interactions directly to governed and compliant execution across insurers’ core workflows.
Gil Tamir, deputy CEO and director of innovation and technology at Phoenix, said the insurance industry has moved beyond experimenting with AI and is already using it in day-to-day operations. But he said companies still face challenges in building systems that meet governance and reliability requirements while also improving the customer experience.
Tamir said policyholders increasingly expect to complete actions on their own, get quick answers and communicate in natural language. He said systems used in regulated industries must be able to explain decisions, remain controlled and deliver consistent accuracy.
Notch said its platform is designed to give organizations the visibility, governance and auditability needed to move AI systems from pilot programs into production while preserving compliance and human oversight. It said the system is intended to automate complex customer inquiries across channels and languages while maintaining consistency and precision.