Canopy Connect – a leading platform for collecting, verifying, and monitoring insurance information – recently announced it has closed a $6.5 million Series A funding round. The new funding round will enable the company to accelerate growth, increase product velocity, and build upon its success with the platform powering over 3,500 companies across a broad range of verticals. Nevcaut Ventures led the round, with participation from Elefund, Nimble Partners, LocalGlobe, 9Yards Capital, Global FinTech Venture Partners, and more.
There has not been a platform for exchanging verified insurance information until Canopy Connect. And for this reason, insurance information is largely exchanged manually today between insureds and the businesses that serve them.
Launched in 2020, Canopy Connect set out to build a missing key piece of infrastructure for the insurance market–a platform for exchanging verified insurance information. And Canopy Connect refined its infrastructure with insurance agencies first, removing the friction from the insurance quoting process by making it easy for people to share verified insurance information with their agents.
A conversation with an insurance agent inspired the idea when she explained how she was driving to her client’s homes to help them download a declaration page so she could advise them and provide a competitive quote. She found this being preferable to asking dozens of questions over the phone or having prospects fill out long forms–in either instance, they often didn’t know essential information, and the insurance policy was unverified.
Now, over 3,000 insurance agencies rely on Canopy Connect’s unified insurance verification API to collect verified insurance information directly from the carrier and sync it to their comparative rater, CRM, or agency management system–all in a matter of seconds. And the insurance sector lags behind the financial services industry regarding digital adoption, which has led to a growing technology gap. This discrepancy proves the need for further digital transformation in the insurance industry to remain competitive and meet evolving stakeholder expectations. Plus, Canopy Connect has become a pivotal solution for businesses that need to verify insurance.
In the last 18 months, Canopy Connect has seen increasing adoption within insurance carriers, embedded insurance companies, digital wallet apps, and other insurtech companies to remove friction from acquiring and verifying insurance information via API. And they have also found success with auto lenders, mortgage companies, and loan servicers that use Canopy Connect for verifying insurance policies at origination and monitoring policies for loan servicing.
KEY QUOTES:
“There are so many use cases that can leverage our core insurance verification capabilities in lending, finance, insurtech, driver management, B2B verification, compliance, and more. This infusion of cash enables us to expand our connected insurance capabilities and meet the needs of these markets.”
– Tolga Tezel, founder and CEO at Canopy Connect
“The insurance world is in the midst of a profound digitization, Canopy Connect is a driving force, expediting this inevitable shift. We’re excited to lead this round and support Canopy Connect’s innovative vision to transform and evolve the industry and everything it touches.”
– Dan Quan, co-founder and general partner at Nevcaut Ventures
“Knowing Tolga and his team’s vision, it was a no-brainer to continue investing in Canopy Connect. We continue to be impressed by how quickly they’ve built leading products for insurance agencies, auto lenders, and mortgage companies, and we are excited to see what breakthroughs they make as they expand into new verticals.”
– Serik Kaldykulov, managing partner at Elefund
