Clearcover, a US based insurtech company focused on providing car insurance solutions, has raised $50m in a Series C funding round led by Canadian multi-stage investor OMERS Ventures.
The new funding for the auto insurance start-up comes almost a year after it raised $43m in a Series B round led by Cox Enterprises.
The company has raised a total of $104m since its founding in 2016. The car insurance company emerged from stealth mode in September 2017 following an initial funding round led by Lightbank, which yielded $11.5m.
The latest Series C funding round was also joined by the company’s previous investors American Family Ventures, Cox Enterprises, and IA Capital Group.
Clearcover noted that it intends to use the funds to further develop the technology used for selling its car insurance solutions.
Furthermore, the insurtech intends to to use the proceeds fast track its growth by continuing its growth in existing markets and also launch its offering across more states in the US.
Clearcover co-founder and CEO Kyle Nakatsuji said: “The market is taking notice of how Clearcover is redesigning the model of running an insurance company in further service of customers. OMERS Ventures brings a wealth of resources and experience to support scaling our business, making them the ideal partner as we take on the next stage of growth.
“This investment enables us to continue delivering better coverage – for up to 230 million licensed US drivers – for less money.”
The car insurance start-up will also use the proceeds from the Series C funding round to integrate more distribution channels in the automotive and financial services sectors.
OMERS Ventures managing partner Michael Yang said: “We are excited to support Clearcover’s mission to disrupt the future of auto insurance.
“Clearcover’s business strategy and technology foundation for sustaining a long-term competitive advantage, combined with its vision for the modern customer experience, is incredibly compelling. We believe in Kyle Nakatsuji and the entire Clearcover team to revolutionize the insurance industry and deliver significant value for their customers.”