Delegance's flat 5% fee pitch draws $3.1M pre-seed led by Grit Capital

Delegance Brokerage has raised $3.1 million in pre-seed funding led by Grit Capital Partners, with Core VC, Gilgamesh Ventures and Outside VC also participating, to expand an AI-native commercial insurance brokerage built around a flat, disclosed fee model.

The New York-based company is attacking one of the more durable revenue mechanics in commercial insurance: the percentage-based commission a broker collects on a placement. Delegance replaces that with a flat 5% disclosed fee, a structure it says can cut total insurance costs by roughly 10% to 20% on a typical placement. It is a blunt pitch, and one that only works if the manual work behind a policy — quoting, certificates, endorsements, renewals — can be pushed into software.

That is where the platform comes in. Delegance supports more than 4,000 business classifications and over 36 forms of coverage, spanning general liability, workers' compensation, property, commercial auto, cyber, professional liability and directors and officers insurance. Many classifications can be quoted instantly, while specialty and excess risks are routed to wholesale insurance markets. Servicing has been automated too: customers can request certificates of insurance, make policy changes, file and track claims, and receive renewal reviews through a single account. Its AI agent, Orin, answers questions using a customer's existing policies across the portal, email, phone and chat, though licensed brokers remain responsible for complex placements and coverage decisions.

The company did not wait on venture money to build the regulated parts. Delegance established its brokerage operations before raising the round and holds licenses across 51 jurisdictions. It has direct appointments with 25 insurance carriers, including Chubb, Travelers and The Hartford, and says it has secured more than $26 million in premium commitments for 2026.

Delegance was founded by CEO Alexander Ledbetter, who came to the problem from the carrier side after working at AXA XL. His argument is less about AI than about where the money currently goes.

"That commission paid for paperwork, and the paperwork never got faster," Ledbetter said. "I taught myself to code so software could do that work. The business should keep the money the paperwork used to cost."

The new financing is earmarked for hiring additional licensed insurance brokers and engineers, and for deepening relationships with banks, private equity firms and software platforms — distribution channels where small and mid-sized businesses tend to encounter commercial coverage requirements.