Vouch Insurance, which offers cover for businesses, has collected $24.5m in its Series A round of funding.
Ribbit Capital and SVB Financial Group led the investment round, with contributions also coming from Y Combinator, Index Ventures, and 500 Startups.
Following the close of the round, the company plans to launch into more states in the coming months. It will also look to expand its product offerings and expand its team.
Currently, Vouch is licensed to sell business insurance to startups in the states of Utah and Illinois, with plans to launch in California in fall and an additional 10 states by the end of the year. Vouch is hoping to have nationwide coverage by the end of 2020.
Vouch has also released its insurance products and risk assessment tools designed for high-growth companies. Businesses can get cover starting from $300 per year for policies including general liability, business property, cyber coverage, employee benefits liability, employment practice liability, fiduciary coverage, and others.
The company policies are backed by Munich Re.
Vouch is the preferred provider of insurance for Silicon Valley Bank client base, which includes around 50% of venture-backed technology and life science startups in the US.
Vouch CEO and co-founder Sam Hodges said, “As seen time and again over the past few years, startups face a range of risks similar to large established companies, yet the current insurance market doesn’t understand our unique needs. This leads to policies that don’t cover what they need to, cost too much, and take too long to get. Vouch is the kind of insurance company I wished existed when I founded my last company.”
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