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 only accepted $ 6.6 million in two rounds before its last investment, raised $ 23 million in a Series A led by MTECH Capital and VIOLA FinTech. Former investors MassMutual Ventures and Nationwide participated in the new investment.
TechCrunch has not caught up with the company since our own Sarah Buhr made the first $ 2 million deal in early 201
What is Insurify?
TechCrunch Insurifys CEO and founder, Snejina Zacharia caught up with the new group.
Zacharia, formerly Gartner, had 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 to work with car insurance and continue to grow and do so had "major problems with digital consumers, [access] because they have very poor user interfaces, [and] because their APIs [were] are not up to date."
Enter Insurify to fill this gap. Insurify is working on developing an “automation behind insurance” and wants to help people find the coverage they need online at a fair price, which is good business for the start-up that is paid for when consumers get a new one Buy insurance through their tools.
According to Zacharia, Insurify acts as a licensed agent for the various 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 contracts 65% of its new contracts online and provides carriers with advance information when a consumer is on their side.
Insurify also builds its own technology products that have had little insurance in the past, including a "wallet" that allows users to manage multiple policies in one place.
TechCrunch asked Zacharia why she decided to raise capital 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 Insurify will help with "horizontal expansion", such as: launch new industries, ”which 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 by an artificial intelligence model," she told TechCrunch, estimating "the value of every click" through a set of algorithms that are regularly adjusted.
(We will not be joking about hedge fund returns at this point.)
The CEO continued: "Putting more money and more fuel behind [Insurify’s] marketing engine could really help us a lot at this point." Insurify explains why the startup decided to raise more capital than it did.
The startup had options when it came to selecting investors – with Zacharia, who told TechCrunch that her company "had several different companies." Termsheets ". Why MTECH and VIOLA as the main investors? Zacharia emphasized the selection of the venture partner as a key and also emphasized the experience and expertise of the individual companies (insurance at MTECH and Fintech at VIOLA).
It it’s going to be fascinating to see what’s happening at the meeting point of new capital, an operational marketing engine, and a growing range of products Factors like the hell are growing. We'll ask in a few months.