Mountain View-based insurtech startup Hippo announced Wednesday it closed its Series A financing round with a $14 million investment led by fintech-focused Horizons Ventures. RPM Ventures, Propel Venture Partners, GGV Capital and Pipeline Capital also contributed funds to the deal.
“Policies still cover old school items like pewter bowls, stock certificates and furs, but only provide $2,000 of coverage for home electronics, said Hippo Co-Founder and CEO Assaf Wand. “We make sure modern homeowners are fully covered through our online, transparent and affordable policies.”
Hippo claims to be the “first of its kind,” offering insurance coverage policies specifically for connected smart homes.
“We took everything that’s wrong with the current state of home insurance—the confusing forms, the outdated policy terms, the agent as middleman—and fixed it,” says Assaf Wand, CEO of Hippo. “The home insurance industry hasn’t changed in decades and no longer reflects modern lifestyles.”
Being the first to offer smart home policies doesn’t mean they’re the first to challenge the classic insurance business. Several other insurtech startups have raised eight-digit rounds over the last several months, including Lemonade’s $34 million Series B, Embroker’s $12.2 million Series A, Toronto-based LEAGUE’s $25 million, and a $20 million Series B for Sacramento’s One, Inc.
They also list an impressive roster of angel investors from the fintech world: Ethos Lending CEO Mark Lefanowicz, Pete Flint (Trulia, Zillow Group), Christopher Hill (PerkSpot), Nerdwallet’s founder Jacob Gibson, and Earnest’s founder and CEO Louis Beryl.
They also hooked in LendingHome’s CEO Matt Humphrey and Founder Josh Stech, as well as venture capitalists Warren Hogarth (formerly Sequoia) Ramtin Naimi (Abstract Ventures), and Soo Boon Koh (iGlobe Partners).
Horizons is an important name here, as it represents their third major funding round in an insurtech company in the last year. They recently took part in the $28 million Series A round for German startup FinanceFox as well as a $15 million Series B in Berlin’s Friendsurance. It’s clear Horizons is trying to sweep up as much of the action in the industry as possible.
“The insurance ecosystem has been overdue for innovation and disruption. In the days of technology, convenience and accountability, home insurance still isn’t easily available online, is overly complicated and requires people to go through agents,” Horizons’s Frances Kangsaid in a press release. “We believe Hippo will be a force to reconstruct the home insurance market, providing more transparency, efficiency and cost-savings and more importantly, peace of mind to consumers.”
Hippo was founded in 2015 by Assaf Wand and Eyal Navon. The money from the round will go toward product development and marketing, aiming at an official launch in H1 2017 out of California, where the company has received regulatory approval.