American Family Ventures, the strategic investment arm of US-based insurance group American Family, has closed a $213m third fund after collecting capital from multiple limited partners (LPs).
Founded in 2013, American Family Ventures typically invests $250,000 to $5m in seed to series B-stage deals, backing developers of financial, cybersecurity, data analytics and internet-of-things technology.
The unit has so far allocated a total of $172m to 65 companies including home equity investment platform Hometap, automotive insurance marketplace Clearcover and insurance policy comparison service CoverHound.
Clearcover is one of the first companies to receive investment out of AFV Fund III, along with online home and auto insurance provider Branch, smart home device maker Wyze and commercial insurance software producer Bold Penguin.
Although American Family Ventures has not revealed the identities of the LPs for AFV Fund III, it said they form part of a scheme called AFV Platform where the unit helps form connections between LPs, portfolio companies and other investors.
Dan Reed, managing director of American Family Ventures, said: “The insurance industry is embarking on profound transformation. Through Fund III, we can help LPs capitalise on this moment – both by understanding the potential of startups and by connecting them with the startup world in mutually beneficial ways.”
