Cover, a mobile-first insurance company, has announced that it has raised $16 million in Series B funding led by Tribe Capital. Y Combinator, Social Capital, Exor, and Samsung Ventures also participated in this round of funding.
With this round of funding, Cover plans to scale its team and expand upon its insurance products. And Cover is going to expand across the US and Canada. So far, Cover has raised about $27 million in total funding.
Cover launched out of the Y Combinator Winter 2016 class to provide a mobile-first solution for quickly and easily getting a price quote for insurance coverage.
After you take a photo of the property that you want to be insured using Cover’s iOS or Android app, it will connect you with insurance brokerages in your area. The goal is to streamline the insurance buying process by providing expert advice and user-friendly technology.
“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’s CEO and cofounder Karn Saroya in a statement. “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 planning to launch Cover 2.0 soon with a number of improvements, including a new e-commerce tool on Shopify called Cover Warranties along with the release of the Cover Driving School. The Cover Driving School is expected to create more opportunities for discounted auto insurance rates.
“Cover is in a class of their own among insurtechs,” added Tribe Capital partner Arjun Sethi. “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.”
Cover’s annualized premium for 2018 has passed $8.5 million and it has been growing at about 30% month-over-month. As of right now, Cover works with more than 30 insurance companies across all 50 states.