Cover, the mobile-first insurance platform, announced today that it closed a $16 million Series B round led by Tribe Capital with participation from Y Combinator, Social Capital, Exor and Samsung Ventures. The new round of funding will be used to scale the team and rapidly expand its insurance product offerings.
Launched in 2016 via the Y Combinator startup accelerator, Cover’s goal is to streamline the insurance buying process through user-friendly tech and expert advice. This round brings Cover’s total funding to $27 million.
“Cover is in a class of their own among insurtechs,” said Arjun Sethi, Lead Investor and Partner at Tribe Capital. “They have clear product-market fit and the team has repeatedly proven that they can deliver the step function increase in the insurance experience consumers need and deserve.”
With Cover 2.0, customers can expect a variety of new improvements to the core mobile app, a new e-commerce tool on Shopify called Cover Warranties, and the release of Cover Driving School which will create more opportunities for discounted auto insurance rates. Cover plans to expand across the United States, eventually scaling to Canada.
“We’ve tripled headcount over the last seven months and in that time, the folks on this team have built the backbone of a multi-line insurance business that will compete for hundreds of billions of dollars in premiums,” said Cover CEO & Co-Founder, Karn Saroya. “Building a strong foundation was incredibly important to us and we’re already seeing the payoff in our ability to deliver an exceptional customer experience.”
Cover is continually working towards establishing itself as a market leader while striving towards a fair and customer-centric model. The company’s annualized premium for 2018 has already surpassed $8.5 million and has been growing at around 30 percent month over month.
“Our mission from day one has been to rebuild insurance, from the product experience to pricing, for the benefit of our customers,” said Saroya. “This funding round will allow us to continue pursuing that mission.”
Cover is a technology company and nationally licensed insurance brokerage that works with more than 30 insurance companies across all 50 states. It was founded in 2016 as part of the Y Combinator W16 batch. Cover’s apps ensure that customers get the most out of their insurance by providing expert customer service and the lowest rates possible.
About Tribe Capital
Tribe Capital is a global venture capital investment firm focused on Internet and software investments leveraging data and technology to partner with great founders solving hard problems.