Vouch, a San Francisco-based company offering all-digital B2B insurance services to startups, announced raising a $60 million Series C co-led by SVB Capital and Ribbit Capital, and a previously unannounced $30 million Series B1 led by Redpoint Ventures, according to a press release.
The release also stated that the company became a fully licensed insurance carrier, on the demand from startup clients, meaning the company can now own its insurance policies and supply them through embedded financing applications.
It also means the company has different operating risks, which led Vouch to develop new insurance coverages, including their Work From Anywhere coverage, broader Cloud Cover for tech companies and comprehensive early to mid-stage startup coverage. The company also developed embedded insurance features for merging their digital insurance platform into client’s existing CRM services.
“A typical client can get a quote and bind their coverage online in under 10 minutes, without any phone calls or paperwork. Vouch also has many coverage features that are uniquely geared for startups. For example, our directors and officers coverage includes a cap table coverage feature meant specifically to protect startups,” Vouch CEO and co-founder Sam Hodges told TechCrunch.
Founded in 2018, Vouch has now raised a total of $160 million in funding, which includes the companies $24.5 million Series A led by Ribbit Capital and SVB, and $45 million Series B led by the Y Combinator Continuity Fund in late 2019. Previously, the company had raised a $24.4 million seed round and participated in the August 2019 Y Combinator fund.
The company currently has 125 employees, and says it will use the combined $90 million in funding to further hiring, continue investing in its technical capabilities, expand product offerings, and build out its embedded insurance technology for partners and clients, according to TechCrunch.
Vouch says that in the next 12 months, all of its partners’ customers will be able to purchase its insurance products through partner websites. The company has already seen large growth in the past year, claiming a sevenfold increase in its customer base year-over-year, with a projected $5.7 billion in risk across thousands of policies, and more than 1,600 clients.
Those clients include Pipe, Middesk, Neighbor and Routable, with Vouch also claiming to be the preferred business insurance provider for Silicon Valley Bank, Brex, Carta and WeWork customers.
“It’s our responsibility to meet startup founders where they are, and give startups flexibility as they navigate changing laws, regulations and the virtual and physical locations of their businesses,” Hodges said.
In other recent fintech news, Amazon is developing a point-of-sales (PoS) to compete with PayPal and Shopify, according to internal Amazon documents. Scalapay also raised Europe’s largest equity funding round with a $155 million Series A led by Tiger Global.