The world of risk insurance is more than the soft drinks and MetroMiles of the world. There is more room for startups in the industry to freshen things up. Such a company, based in Cambridge, Insurify, is launching a new round of risk that will significantly expand its capital base.
The startup, which had received just $ 6.6 million within two rounds of its last investment, raised $ 23 million in a Series A led by MTECH Capital and VIOLA FinTech. Previous investors MassMutual Ventures and Nationwide participated in the new investment.
TechCrunch has not caught up with the company since our own Sarah Buhr closed the first $ 2 million deal in early 2016. As expected, a lot has changed in the past four years.
What needs to be insured?
To get into the new round, TechCrunch has caught up with Insurify CEO and founder, Snejina Zacharia,
Zacharia, formerly from Gartner, came up with the idea for Insurify after an accident years ago. After an unsatisfactory experience in the insurance industry, she found that consumers "have very, very little idea how much insurance coverage they need" and that insurers (Insurify started working with car insurance and continue to grow and grow) Household insurance had "big problems" [access] digital consumers because they have very poor user interfaces, [and] their APIs [were] Not up to date. "
Enter Insurify to fill this gap. Insurify is developing an "automation behind insurance" and wants to help people find the coverage they need online at a fair price. It's good business for the start-up that gets paid when consumers buy new insurance on their tools.
According to Zacharia, Insurify acts as a licensed broker for the different types of insurance that consumers find.
However, it is more than an intermediary. The startup wants to bring insurance buying more into the digital world. Today, Insurify completes 65% of its new policies online and provides operators with pre-installed information when a consumer is on their side.
Insurify also builds its own technology products that have been insured in the past, including a wallet that allows users to manage multiple policies in one place.
TechCrunch asked Zacharia why she decided to raise funds now. According to the CEO, her company is ready to accelerate its launch after doing “a lot with almost nothing”.
In practice, the new capital will help Insurify to “expand horizontally,” for example, by launching new industries that include home, rental, and other types of insurance, she said. It is even more interesting that Series A is also used to promote the marketing branch of the startup, which, according to Zacharia, is run like a "hedge fund". Insurify's marketing efforts are “automated” [an] Artificial intelligence model, ”she said to TechCrunch, which estimates“ the value of each click ”using a set of algorithms that are adjusted on a regular basis.
(We will avoid joking about hedge fund returns at this point.)
The CEO said that “there is more money and more fuel behind it [Insurify’s] The marketing engine could really help us a lot at this point, ”Insurify explains why it chose to raise more capital.
The startup had options when it came to selecting investors, and Zacharia informed TechCrunch that her company had “several different term sheets” to choose from. Why MTECH and VIOLA as main investors? Zacharia emphasized venture partner Selection as a key and highlighting the experience and expertise of each company (insurance with MTECH and fintech with VIOLA).
It will be fascinating to see what happens at the meeting point of new capital, an operational marketing engine and a growing range of products. Presumably, Insurify can grow out of this confluence of factors like hell. We'll ask in a few months.