Insurance startups was arguably fintech’s most promising sector in 2016, and two weeks into the new year it seems as potent as ever. British startup Bought By Many is ringing in 2017 with a $9 million (£7.5 million) Series A financing round. Octopus Ventures led with Munich Re/HSB Ventures and unnamed existing investors in tow.
Bought By Many picks up on a trend that sees customers looking to insure things that hadn’t had policy coverage available before or have unique circumstances that makes it difficult to find coverage.
“Many people have something about their personal circumstances or interests that makes all kinds of insurance – travel insurance, pet insurance, home insurance etc. – harder or more expensive to get,” Bought By Many Co-Founder and CEO Steven Mendel told Geektime. “We help people find insurance for those things, and use the collective buying power of our 250,000 members to negotiate better prices with insurance providers.”
Some of their more unique policies include pet insurance for French bulldogs (there’s apparently a market I was unaware of), special travel insurance for diabetics and home insurance for cyclists.
“This commercial agreement and investment marks another important milestone in our journey to transform the customer experience of insurance,” Mendel said. “In partnership with Munich Re, we can now create a full stack insurance proposition, satisfying the unmet customer needs revealed by both our data analytics and ongoing conversation with our 250,000 members.”
This is the company’s biggest funding round for the London company since being founded in 2012, coming during a wave of eight-digit funding rounds for growing insurtech startups.
Rounds to note over the last few months include a $7 million round for health insurance startup Zipari at the end of December, Lemonade’s $34 million Series B, Embroker’s $12.2 million Series A, Toronto-based LEAGUE’s $25 million, a $20 million Series B for Sacramento’s One, Inc., Hippo‘s $14 million Series A, a $28 million Series A round for German startup FinanceFox, and a $15 million Series B for Berlin’s Friendsurance.
“I am delighted Octopus is leading this round,” Octopus Ventures’ Malcolm Ferguson said in a press release, playing up his new portfolio company’s capabilities. Bought By Many’s innovative distribution model and technology platform, combined with their exceptional traction with customers and world-class team, puts them among the world’s leading insurtech startups.”