US-based digital car insurance provider Clearcover completed a $200m series D round yesterday that included automotive services group Cox Enterprises and American Family Ventures, the corporate venturing arm of insurer American Family.
Investment firm Eldridge led the round, which also featured Canadian pension fund Omers’ venture capital unit, Omers Ventures, and undisclosed additional investors. It valued the company at $1bn at least, a person familiar with the deal told Reuters.
Founded in 2016, Clearcover operates an online platform that lets users purchase personalised car insurance products in under 10 minutes. It will use the capital injection to fund recruitment activities for its insurance, product and engineering divisions.
Kyle Nakatsuji, co-founder and chief executive of Clearcover, said: “In an industry ripe for transformation, we see ourselves as innovators in digital car insurance experiences while providing our customers more value for less money.
“This new capital will allow us to continue our growth across the country, providing better insurance to more customers.”
The company said it has raised $329m of funding to date, including $50m in a series C round in January 2020 led by Omers Ventures that included Cox Enterprises, American Family Ventures and investment firm IA Capital.
Cox Enterprises led Clearcover’s $43m series B round in early 2019, which was backed by American Family Ventures, IA Capital, Lightbank and Hyde Park Angels while Silicon Valley Bank supplied an undisclosed amount of debt financing.
Clearcover had already picked up $11m of series A funding in a 2017 round led by Lightbank with Greycroft, 500 Startups, Silicon Valley Bank and an unspecified additional investor also participating.