- High-growth insurtech group Hippo announced that it has raised $150 million in Series E funding at a $1.5 billion post-financing valuation
High-growth insurtech group Hippo announced that it has raised $150 million in Series E funding at a $1.5 billion post-financing valuation. Hippo’s home insurance model includes world-class customer experience and services that proactively identify and help to resolve risks for its consumers. And in the past year, the company has grown its total written premiums to $270 million, growing at 140% YoY.
New investors that joined the oversubscribed round include FinTLV, Ribbit Capital, Dragoneer and Innovius Capital. And there was significant participation from existing investors. Additional existing investors participating in Hippo’s Series E fundraise included BOND, Comcast Ventures, Felicis Ventures, Fifth Wall, Horizons Ventures, ICONIQ Capital, Innovius Capital, Lennar Corporation, Pipeline Capital, Propel Venture Partners, RPM Ventures, Standard Industries, and Zeev Ventures. And the round also includes investment from large international hedge funds and family offices.
This round of funding will be used to accelerate the company’s expansion, including to reach 95% of the U.S. homeowner population in the next 12 months, pursue talent, invest in its successful technology operations, and support the company’s proposed acquisition of a national insurance carrier.
For the majority of Americans, their home is their most valuable financial asset. And yet, more than 60% of U.S. homes are underinsured thus leaving people’s financial future at risk.
Hippo provides more accurate and affordable coverage by using technology and data integrations to develop a unique profile of a customer’s property during the onboarding process. And the company actively reviews changes to a customer’s property over time using thermal and satellite imagery and layers in artificial intelligence, machine learning, and public records to keep customers’ properties protected year-after-year.
The Hippo smart home program — which offers eligible customers complimentary smart home devices at sign-up — has delivered over 400,000 devices to date and helps alert homeowners to potential issues such as water leaks. And when things do go wrong, Hippo’s one-of-a-kind claims process delivers an efficient service and repair experience for its customers that utilizes highly vetted contractors and is supported every step of the way by Hippo’s empathetic claims concierge team.
Hippo started selling its policies to homeowners in 2017 — which initially rolled out in California and is now available to more than 70 percent of the U.S. homeowners population across 29 states. And Hippo expanded its product portfolio with products for landlords (available in nearly 15 states) and a product for new construction — which is available in 12 states and counting.
Hippo’s business has been strong with a 60% increase in sales YoY in Q2 2020 as homeowners shelter in place. And to ensure homeowners receive the home repair and maintenance help they needed to upkeep their homes and lives over the past five months, Hippo Home Care has provided free virtual telemaintenance services.
Hippo 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. And construction is underway and will hold up to 310 Hippo employees when it opens next year.
KEY QUOTES:
“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.”
— Hippo Co-founder and CEO Assaf Wand
“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.”
— Gil Arazi, Founder and Managing Partner at FinTLV, a leading insurtech-focused VC fund
