Cover Whale Insurance Solutions has secured $40 million in equity financing from Morgan Stanley Expansion Capital, marking a shift from the investment firm’s previous role as lender to equity partner.
The funding will support the insurtech’s efforts to scale its technology platform, enhance data analytics, and expand its product offerings within the commercial auto insurance market.
Founded in 2020, Cover Whale focuses on the trucking segment, offering a digital platform that enables agents to quote and bind policies. The company uses algorithmic underwriting and real-time telematics to continuously assess risk throughout the policy term. It has reported strong performance in a sector known for underwriting challenges.
“After years of rapid growth, 2024 marked a pivotal year for Cover Whale as we focused on re-building our foundation,” said founder and CEO Dan Abrahamsen. “We invested in our technology platform, built a high-performing service organization, and refined our pricing, underwriting and loss control programs. Morgan Stanley Expansion Capital's transition from lender to equity partner is a gratifying affirmation of the tremendous progress made over the past few years, and their renewed backing gives us the resources to fully capitalize on the significant growth opportunities ahead.”
Morgan Stanley Expansion Capital initially backed Cover Whale with a structured debt instrument in May 2024. The latest equity investment reflects what the firm described as confidence in the company’s strategy and leadership.
“Today’s growth equity investment reflects our conviction in Cover Whale’s business strategy, execution and leadership team,” said Nick Nocito, executive director at Morgan Stanley Expansion Capital. “Over the last 18 months, the team has built a high-quality, scalable platform that we believe will generate significant growth in the coming years.”
Cover Whale reported $133 million in gross written premiums for the first half of 2025 and is projecting $277 million by year-end.
