InsurTech startup Hippo raises $150 mn in Series E at $1.5 bn valuation

Source: IBS Intelligence 2020-07-22

Assaf Wand, Co-founder and CEO, Hippo

Hippo, an InsurTech group transforming home insurance through a deep focus on customer experience, has announced that the company has secured $150 M in Series E funding, valuing its business at $1.5 B post-financing.

The oversubscribed funding round saw participation from new investors including FinTLV, Ribbit Capital, Dragoneer and Innovius Capital. Additional existing investors who participated in the round include BOND, Comcast Ventures, Felicis Ventures, Fifth Wall, ICONIQ Capital, Innovius Capital, Lennar Corporation, Pipeline Capital, Propel Venture Partners, Horizons Ventures, RPM Ventures, Standard Industries, and Zeev Ventures. The new finance brought the company’s total funding to date to $359 M.

The firm is planning to use the investment to accelerate the company expansion targeting to reach 95 percent of the U.S. homeowner population in the next 12 months, make key hiring additions, invest in its successful technology operations and support the company’s proposed acquisition of a national insurance carrier.

The company is expecting to increase its employee count by 100 people this year and will be expanding its Austin, Texas presence with a new Hippo ATX campus.

Hippo’s home insurance model includes customer experience and services that proactively identify and help to resolve risks for its consumers. The company in the past 1 year has grown its total written premiums to $270 M, growing at 140% YoY.

“We set out to change the relationship between homeowners and home insurance by offering more value and services in each interaction with our customers. We’ve seen tremendous growth over the last three years since launch, by leveraging technology wisely and reimagining the customer experience. We’re developing a long-term relationship with our customers, in part by supporting our insurance customers with home maintenance and smart home devices – all of which help solve small problems before they become big headaches,” said Assaf Wand, Co-founder and CEO, Hippo.

Hippo offers accurate and affordable coverage by using technology and data integrations to develop a unique profile of a customer’s property during the onboarding process. The firm actively reviews changes to a customer’s property over time, using thermal and satellite imagery and layers in AI, machine learning and public records to keep customers’ properties protected, year after year.

Hippo home insurance policy comes with a complimentary smart home monitoring system and a discount on user’s premium for protecting home against common risks like fire, water damage, and theft. The company has provided over 400,000 devices to date and helps alert homeowners to potential issues, like water leaks.

“We’ve watched Hippo transform the home insurance experience, from its proprietary underwriting technology to its delightfully refreshing customer experience, a rarity in the industry. The value Hippo provides for consumers and the strides it has made towards the larger progression of the P&C insurance sector makes it the most compelling technology insurance company of its time,” said Gil Arazi, Founder and Managing Partner, FinTLV, a leading insurtech-focused VC fund.

Recently, Hippo acquired Spinnaker Insurance to enhance global reach.

Founded in 2015, Hippo Insurance Services is on a mission to transform home insurance for the modern household. The company is reimagining the traditional homeowner’s insurance policy by using trusted data sources, a smart home device kits. The firm began selling its policies to homeowners in 2017 and is now available to more than 70% of the U.S. homeowners population across 29 states.

Hippo

InsurTech startup Hippo raises $150 mn in Series E at $1.5 bn valuation

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