Kin – a pioneering digital direct-to-consumer (D2C) home insurance company – announced the closing of $15 million in financing from new investor Activate Capital, a growth-stage VC firm focused on the sustainable, resilient transformation of the global economy.
Raising at an increased valuation greater than $1 billion is an achievement that is becoming increasingly rare as other technology companies continue to have trouble securing capital in this economic climate. And Kin maintained systematic, capital-efficient growth, increasing revenue by more than 50% year-over-year and maintaining positive net income in 2023.
With this incremental funding, Kin can accelerate its growth investments, including multiple new markets and products, which will widen the gap with legacy insurers that cannot respond quickly to changes in climate, technology, and consumer preferences.
Activate invests in companies focused on building category-defining platforms that address disruptive global forces like climate change. Sustainability and resiliency are at the heart of Activate’s investment strategy, where its portfolio companies are accelerating decarbonization and strengthening shared systems of energy, production, transportation, trade, and infrastructure.
Kin operates in eight states where it serves about 115,000 policyholders, and its reciprocal exchanges have nearly $345 million of premiums in force.
KEY QUOTES:
“Investors appreciate our focus on the fundamentals – maintaining positive unit economics, using technology for accurate pricing and better underwriting, and eliminating unnecessary steps in the insurance journey. We ended the year with approximately $85 million in cash, which doesn’t include the cash in the reciprocal exchanges we manage. But in this environment, having a strong balance sheet is particularly beneficial, which is why we’re excited to partner with Activate on the investment.”
– Sean Harper, CEO of Kin
“As millions of homeowners seek to protect themselves against growing risks from climate change, reliable and affordable insurance grows as a socioeconomic imperative. We believe that Kin’s unique approach to homeowners insurance unlocks new levels of agility in adapting to market challenges and providing necessary coverage in many underserved regions.”
– Eric Meyer, principal at Activate
