Shipping insurance analytics firm Ceto has added more financial firepower to expand its data platform.
The UK operation said its latest $4.8m funding round was led by venture capital player Dynamo Ventures.
Insurer Howden Ventures also took part, as well as Signal Ventures and Motion Ventures.
Ceto captures and analyses high-frequency data from vessels to improve insurance risk selection, reduce machinery failures and enhance fuel efficiency.
These insights are delivered through an integrated dashboard, which the company says is a first-of-its-kind connected insurance product backed by leading global insurers.
Ceto does not name clients, but works with a major Japanese operator, a midsize Singapore-based firm, and a UK owner with a fleet of eight vessels.
One customer has 440 ships.
Ceto says it can reduce CO2 emissions by thousands of tonnes, as well as cutting breakdowns.
“For as long as humans have existed, so has our desire to sail the open water. It’s no surprise then that maritime — one of the world’s oldest industries — still relies on some outdated practices,” Ceto founder and chief executive Tony Hildrew said.
“At Ceto, we aim to unite the power of AI with the indispensable human expertise at the heart of maritime. This kind of technology plays a critical role in identifying risk and improving decision-making, ushering in a smarter era for shipping and finance,” he added.
The main platform, Watchkeeper, uses AI to track ships in real time, spot issues early, and keep fleets running safely and efficiently.
The Connected Insurance service ties a ship’s performance data to its insurance, rewarding safer and more efficient operations with better terms and lower premiums.
As it takes on a growing international customer base, Ceto is building up its engineering, operations and sales teams.
It has appointed Bob Clarkson as chief underwriting officer, a specialist with 30 years of experience in marine insurance.
He has led underwriting and claims, and served as an in-house insurance manager within shipowners’ offices.
100-year-old practices
Dynamo Ventures managing partner Santosh Sankar said: “Maritime operations are the backbone of industry, with 80% of global trade by volume taking place over sea.
“An industry with this much global reliance is insured using analogue practices that are a hundred years old.”
“Ceto’s quest to reshape the future of maritime insurance is not just inspirational — it’s necessary.
“Our world won’t move forward if our supply chain is stuck in the past, and Dynamo is excited to be supporting Ceto as they embark on this journey to improve how these assets are monitored, maintained and insured,” Sankar added.
In 2023, Ceto said a £1.5m ($1.9m) financing round was led by insurer Howden.
Funding also came from another insurer, Chaucer Group, and Founders Factory, plus existing investors from Business Investors Group.
Marine engineer Hildrew previously worked at ship repairer A&P, Nautical Management Services and brokerage West Nautical.
