- Upsie, a consumer-friendly platform for purchasing product warranties, announced it raised $5 million in funding
- True Ventures led this round of funding
- Techstars Ventures, Matchstick Ventures, Syndicate Fund, M25, and angel investor Marc Belton also joined
Upsie is known as a consumer-friendly platform for purchasing product warranties. Recently, Upsie announced it raised $5 million in funding led by True Ventures. Techstars Ventures, Matchstick Ventures, Syndicate Fund, and M25 participated in this round along with past angel investor Marc Belton.
Upsie will be using the funding for increasing customer awareness, continuing to build its warranty product offerings, and growing the business.
How does it work? Pretend you are looking for a new smartphone. And when you find the one you want, the salesperson starts will start trying to sell you a warranty protection plan. Either you buy it and maybe never use it or you leave the store without the device being protected since it is unclear whether the warranty is actually worth the price.
Generally, salespeople push for warranties since it drives substantial profits and some of these plans are marked up as high as 900%.
Essentially Upsie has a goal of fixing the product warranty experience and save consumers money. These warranty plans can cost up to 70% less than competitor plans.
“We want consumers to know there’s a better way to insure their products, starting with electronic devices,” said Upsie CEO and founder Clarence Bethea. “We’re thrilled to work with Puneet (Agarwal) and the True Ventures team. They have a track record of giving early stage companies the resources and support they need to build world-class organizations. Having a Silicon Valley firm invest in Minnesota sends a clear message that there is talent in the Midwest and we are building something special here.”
Pew Research Center estimates that 77% of Americans own smartphones, but 58% of Americans have under $1,000 in their savings accounts, which makes replacing a device such as the expensive iPhone XS impossible without a warranty. Upsie customers can easily purchase warranties, make a claim, and even cancel warranties within its platform. All of the warranty information is stored in one place and can be accessed at any time.
“We love partnering with founders who have a fresh perspective on how to improve industries that haven’t experienced much technological or business model innovation in years if not decades,” added True Ventures partner Puneet Agarwal. “Upsie is an example of the exciting technology companies we see growing and flourishing in smaller cities across the U.S. We’re honored to fund this young company and support Clarence and his team as they rethink the product warranty space to the benefit of today’s consumers.”
Techstars Ventures, Matchstick Ventures, Syndicate Fund, and M25 participated in this round along with past angel investor Marc Belton.