Insurtech CoverWallet Secures $18.5 Million to Expand Small Business Insurance Platform
Digital business insurance agency CoverWallet said it has closed a $18.5 million Series B funding round led by Foundation Capital with participation from existing investors Union Square Ventures, Index Ventures, CV Starr and Two Sigma Ventures.
The firm uses analytics and state of the art technology to customize and simplify, or in its words “democratize,” the purchase of insurance by small businesses.
Its carrier partners include Liberty Mutual, CNA, Starr, Guard, Hamilton, Markel, Employers, Travelers, Progressive, Hiscox and Atlas.
Since launching in 2016, CoverWallet has secured more than $30 million in venture capital funding, including $7.8 million last November.
Insurer CV Starr became a minority shareholder in CoverWallet in July. Starr previously invested in CoverWallet’s Series A round, which also included Union Square Ventures, Index Ventures, Highland Capital Partners, Two Sigma Ventures and Founder Collective.
As part of this latest round of funding, Charles Moldow, partner at Foundation Capital, joins John Buttrick from Union Square on the company’s board of directors.
Inaki Berenguer, co-founder and CEO of CoverWallet, welcomed Foundation Capital and Moldow to the company. “They share our assessment of the insurance industry as being inefficient and unloved by customers. Not a recipe for success,” Berenguer said. “Today, there exists a unique opportunity to reinvent it by focusing on the CoverWallet principles of simplification and transparency, leveraging analytics, and, ultimately reducing friction. We are on a mission to use technology to democratize hassle-free access to business insurance.”
The company said it plans to use the new funding to continue building its core technology, expand partnerships and scale operations.
CoverWallet was launched in the first quarter of 2016 with $2 million seed funding. The company won the 2017 Best Insurtech Solution from the Benzinga Awards.