Stitch Secures Funding from ManchesterStory and BrokerTech Fund to Launch Insurance-First Agentic AI Platform

Portland, OR – [July 8, 2025] —  Stitch, an AI platform purpose-built for the insurance industry, today announced it has closed a $3M Seed round led by ManchesterStory, a premier InsurTech-focused venture capital firm. ManchesterStory invested through its InsurTech-focused MS Discovery Fund II, and through BrokerTech Fund which together invest in innovative companies driving carrier and broker-centric innovation across the insurance value chain.

The investment will accelerate Stitch’s go-to-market efforts, deepen its insurance-specific AI capabilities, and expand adoption of its AI Studio platform among carriers, brokers, and managing general agents (MGAs).

“This funding validates that the insurance industry is ready to move from AI experimentation to meaningful production deployments,” said Santoash Rajaram, second-time InsurTech entrepreneur and founder of Stitch. “With Stitch, we’re giving insurers access to insurance-specific AI agents out of the box coupled with full control to build, deploy, and govern agents tailored to their operations without compromising compliance, explainability, or control.”

Beyond the LLM: Purpose-Built AI for Regulated Insurance Environments

Unlike general-purpose AI platforms, Stitch is built from the ground up to address the specific needs of the insurance industry. Stitch’s dual-layer approach combines domain-extendable AI agents enabling precise data interpretation, deterministic decisioning, and seamless integration within existing workflows. 

The platform’s structured AI architecture allows underwriters, claims teams, and operations leaders to automate high-friction workflows within their existing systems, all while maintaining transparency, auditability, and regulatory alignment.

Backing from a Leading Insurtech Investor

“We invest in companies that bring real, durable value to the insurance sector, not just generic AI,” said Matt Kinley, Founding Partner at ManchesterStory. “Stitch is solving the last-mile AI problem in insurance: how to make AI usable, controllable, and trustworthy at the edge of complex operational workflows. We are very excited to partner with the Stitch team to help expand generative AI solutions to the insurance industry.”

Meeting the Market Where It’s Headed

The announcement comes as the U.S. insurance industry crosses a tipping point in AI adoption. The industry is embracing artificial intelligence (AI) at an accelerating pace, with 77% of respondents in a recent Conning survey indicating they are in some stage of adopting AI in their value chain.

Stitch bridges this gap with pre-built insurance specific agents, agentic workflows and a studio model that gives operational leaders the ability to easily build and launch AI agents directly into existing systems.

Stitch’s early design partners span Individual Life and Annuities, Group & Voluntary Benefits, and property & casualty (P&C) sectors, and include Brokers and MGAs eager to scale with lean operational teams.