Evaluating only Pie Insurance’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Pie Insurance founded
DOWN ROUND
Down round or bridge financing
SHUTDOWN
Zombie Startup: Pie Insurance ceases operations
Full Analysis
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Documented cause
Pie Insurance raised 315 million dollars to bring technology-driven pricing to workers compensation insurance for small businesses. After rapid growth, loss ratios deteriorated as claims exceeded projections. The company cut 15 percent of staff in 2022 and more in 2023, entering zombie mode as it struggled to reach profitability in a notoriously difficult insurance segment.
Lesson
“Workers compensation insurance for small businesses is one of the most adverse-selection-prone markets in insurance. Superior data science helps but cannot fully overcome the selection problem.”