US-based business insurance platform CoverWallet secured $18.5m yesterday in a series B round led by venture capital firm Foundation Capital with participation from insurance firm CV Starr.
VC firms Union Square Ventures, Index Ventures and Two Sigma Ventures also contributed to the round, which increased the total capital raised by CoverWallet to more than $30m since it was founded in 2015.
CoverWallet operates an online platform that uses analytics to help small businesses purchase and manage insurance. It offers coverage for areas including general liability, workers compensation, product liability, cyber liability and more.
The company plans to use the funding to scale up its operations to meet demand while also continuing work on its technology and expanding its industry links.
CV Starr’s investment was announced in July 2017 as part of a strategic partnership between the companies that will involve them working together to develop new products.
CoverWallet raised $7.8m in a November 2016 series A led by Union Square Ventures that included Index Ventures, Highland Capital Partners, Two Sigma Ventures and Founder Collective. The latter three had joined undisclosed angel investors for its $2m seed round in March 2016.
Inaki Berenguer, CEO of CoverWallet, said: “We are thrilled to welcome Foundation Capital and Charles Moldow to the CoverWallet family. They share our assessment of the insurance industry as being inefficient and unloved by customers. Not a recipe for success.
“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.”