Delegance Brokerage Raises $3.1 Million in Pre-Seed Round

The New York City-based startup plans to use the new funding to hire engineers and expand its insurance brokerage operations.

Updated on Oct. 20, 2026 in Startups

Delegance Brokerage Raises $3.1 Million in Pre-Seed Round

Live Poll

Would you prefer a flat brokerage fee over a traditional percentage commission for your insurance?

Delegance Brokerage has secured $3.1 million in pre-seed funding led by Grit Capital Partners. The company plans to use the capital to recruit additional licensed brokers and engineers while growing its distribution network.

Why it matters

The company aims to disrupt the insurance market by charging a flat 5% service fee, significantly lower than the 15% to 25% commission rates typically charged by traditional brokers. This capital infusion will support the expansion of relationships with private equity firms, banks, and software platforms.

Delegance Brokerage holds licenses in 51 jurisdictions and maintains direct appointments with 25 insurance carriers. The platform currently supports 4,000 business classifications and 36 different types of insurance coverage.

The players

Delegance Brokerage

This is a New York City-based insurtech startup that uses AI to provide automated brokerage services for businesses.

Grit Capital Partners

This is a venture capital firm that acted as the lead investor for the recent pre-seed funding round.

Core VC

This is an investment firm that participated in the $3.1 million funding round for the startup.

Gilgamesh Ventures

This is an institutional investor that provided capital to the company during the latest financing event.

Outside VC

This is a venture capital firm that joined the funding effort alongside lead investor Grit Capital Partners.

The details

The platform utilizes AI to automate policy administration and quoting processes, while licensed brokers oversee complex coverage decisions and claims. With $26 million in premium commitments reported for 2026, the firm is positioning itself as a low-cost alternative for commercial insurance placement.

The business model was developed in 2023 after observing industry commission structures.
The firm reported $26 million in premium commitments for 2026.
The funding round was officially announced on October 20, 2026.

Market Landscape

This investment highlights the increasing competition among startups seeking to automate traditional insurance brokerage tasks. By undercutting standard commission rates, Delegance is competing directly against established insurance firms that rely on legacy manual processes.

Business owners may find lower insurance costs through the platform, which offers a 5% fee compared to the industry standard of 15% to 25%. This shift could potentially lower total insurance expenditures by 10% to 20% for companies using the service.

The takeaway

The move demonstrates how automation and flat-fee models are beginning to challenge long-standing commission structures in the commercial insurance sector. Clients should weigh the benefits of lower fees against the necessity of having a human broker available for complex claims and coverage decisions.