Vouch Insurance closes second round of funding in a matter of months

Vouch Insurance has raised $45m in a Series B, just months after closing its Series A round on £24.5m.

The Series B investment was led by Y Combinator Continuity.

Back in September, Vouch closed its Series A round on $24.5m following investments from Ribbit Capital, SVB Financial Group, Y Combinator, Index Ventures and 500 startups.

Vouch is planning to use the new equity to support its deployment into additional US states, with hopes of covering the whole US by the end of 2020. Plans also include the enlargement of its team.

The company is already making strides towards its US-wide expansion. Alongside the close of this Series B, the InsurTech has launched its services in California.

Vouch launched its services in Utah and Illinois back in September 2019. It has already achieved a 5% market share in Utah in just eight weeks.

California was picked as its next market due to its large business insurance market which represents 50% of the whole of the US.

Vouch offers business insurance specifically designed to help startups survive in the turbulent market and have the freedom to innovate. Insurance can be taken out for general liability, cyber coverage, business property, directors and officers, and errors and omissions.

Vouch CEO and co-founder Sam Hodges said, “Vouch helps founders manage the risks associated with starting up a new company, so they can focus on creating and growing businesses that change the world. We believe that’s a purpose worth pursuing.

“As an entrepreneur, I’ve spent most of my career building companies at the intersection of technology and financial services. I know first-hand that along the journey of building and growing a business, teams will face numerous high-stakes challenges. Vouch is here to support entrepreneurs and mitigate those challenges from the beginning, leaving more room for growth.”

With the fresh funds, the company has raised a total of $70m in venture capital.

Copyright © 2019 FinTech Global

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