“Throughout our 100-year history, continuous innovation and adaptation has positioned State Farm as the leader in a highly competitive industry. We recognize that investing in innovation is key to our continued success of serving our customers, and we look forward to discovering additional opportunities for investment in diverse and creative start-up companies that promote safety and security in our communities,” says Michael Remmes, Vice President, State Farm Ventures.

State Farm Ventures was established in 2018 and has made 21 investments to date.

State Farm Ventures Mission:

Inspired by our Ventures’ mission to Go Beyond Possible®, our goal is to meet the ever-growing needs of our diverse customer base. We invest in companies that disrupt conventional modes of operation to help each of us live smarter, safer and better lives.

We encourage start-ups to approach our team to discuss how we can assist their efforts to improve the lives of our customers.  Go to: https://ventures.statefarm.com/

State Farm Ventures focus areas include, but are not limited to:

Mobility & Transportation – As the leading automobile insurer, we look to invest in technologies, services and capabilities that improve vehicle/pedestrian safety, enhance our ability to underwrite and handle claims more efficiently, and allow us to enter new markets, including connected vehicles, cyber-security, and payments.

Residential & IOT – As the leading homeowner insurer, we seek to invest in emerging technologies, including the Internet-of-Things (IOT) to help reduce claim frequency and severity and allow our customers to live safer and better lives. 

Artificial Intelligence – We look to invest in new technologies, such as machine learning, natural language processing, and virtual reality that can bring improved simplicity and service to our customers, agents, and employees.

Insurtech/Fintech – We seek to invest in new technologies that expand our market leading ability to provide products and services to our customers.

See additional focus areas and a portfolio of investments: https://ventures.statefarm.com/

About State Farm Ventures, LLC

State Farm Ventures focuses on investing in start-ups developing technologies and products to fulfill customer needs in ways they may not expect from their insurance company.  State Farm Ventures, LLC is a wholly-owned subsidiary and registered trademark of State Farm Mutual Automobile Insurance Company.  

“When startups find out I work for State Farm they’re surprised,” says Chan.

State Farm products insure where we live, how we travel, and cover life and wellness. If companies can help us continue to innovate in any of those strategic areas, Chan wants to speak with them.

“That eureka moment where I make the connection between a State Farm need and a solution from a startup is my favorite part of the job,” he adds.

“We are looking for products and services that we don’t currently have or technology that can enhance the products and services we currently offer,” says Mike Remmes, Innovation Executive in Labs @ State Farm. He’s also the architect of its State Farm Ventures, which focuses on research and development.

“We want to invest in companies that can help streamline our processes and operations or provide better services and products to our customers, now and into the future.”

However, venture capital waters are rough and unpredictable.

“Challenging conventional thinking is the point where innovation occurs,” explains Corey Schieler, Director of State Farm Ventures. What his team seeks is alignment between State Farm and startups.

That connection recently happened with a young firm called HopSkipDrive. The company specializes in transporting children to and from school. State Farm Ventures determined that the idea provides a valued service and peace of mind. In fact, it’s not just for customers facing transportation challenges for their children; there may be future alignment to customers with elderly parents facing similar mobility difficulties.

State Farm Ventures is a wholly owned subsidiary of State Farm. It launched in 2018 with a $100 million investment commitment and has already provided funding to nine companies.

“We try to find companies that are strategic to us. They must benefit our policyholders or advance the interests of State Farm. They must also provide a competitive advantage,” concludes Remmes.

Other investing examples include Cambridge Mobile Telematics. They provide State Farm with the technology behind Drive Safe & Save, our signature discount program. There's also the Whisker Labs' Ting device that can help mitigate or prevent house fire losses.

State Farm has been an innovative company since day one. Then, a farmer named George J. Mecherle decided to create an insurance company that more fairly matched risk to price.

As we approach our 100^th anniversary, the pursuit of innovation to better service customers remains our north star.

Pitching ideas to State Farm Ventures has never been easier thanks to the new State Farm Ventures website. To all entrepreneurs seeking funding: innovation is key, but khakis are not mandatory.