Life insurance platform Fabric has collected $10m in its Series A funding round led by Bessemer Venture Partners.
Participation also came from RGAx as well as unnamed existing backers. Silicon Valley Bank also contributed to the funding, supplying a credit facility.
The platform, which launched last year, uses proprietary technology to help families purchase life insurance – all policies on the platform are issued by Vantis Life. Brooklyn-based Fabric currently focuses on life insurance, offering coverage of between $100,000 and $500,000 for between six dollars and $30 per month.
Farbic says in exchange for monthly payments a life insurance company agrees to pay a lump sum to beneficiaries if users die while their policy is in force. The platform also helps uses to create a will to further protect their children future.
The startup basic package only covers accidental death, which it says is the primary cause of death for 25 to 44-year olds. Users can upgrade to Fabric premium offering to include coverage, which is a 20-year term service and also includes accidents and illnesses.
Bessemer Venture Partners partner Charles Birnbaum said, “We believe Fabric has the opportunity to build a category-defining company and we are excited to have backed a great team working hard to fix a broken market.
?Young parents know that they need to protect their family’s future and are searching for new insurance solutions more in line with what they have come to expect from other digital financial services.”
Last year, the company nabbed $2.5m in its Seed round, which was also led by Bessemer. The previous round also received commitments from?Box Group, Brainchild, Maveron, Red Sea Ventures and RGAx.
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