View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
June 9, 2022

US insurtech Branch joins unicorn club with Series C infusion

Ohio-based insurtech start-up Branch, which bundles home and auto insurance, has raked in $147m in a Series C round at a valuation of $1.05bn.

Free Whitepaper
img

Disruptive start-ups to watch out for

2021 was a record-breaking year, with more businesses breaking into the billion-dollar club. Many start-ups have achieved or retained the unicorn status by the end of the year to reflect nearly a fivefold growth from that in 2020. This boom can be linked to a financing frenzy spurred by the quick adoption of technology and innovative solutions by start-ups gaining traction in response to the pandemic. However, the start-up ecosystem is now facing turbulent times for fundraising as investors seek long-term business strategies, valuations, and a route to profitability amid uncertain market circumstances. Nevertheless, 2022 has the potential to carry forward the momentum with multiple entities having a fair chance of being in the right place when aided by the right technologies. GlobalData leverages the power of alternative data to examine the health of start-ups across multiple dimensions including the quality of their innovations, market presence, and the funding they can attract. This helps our clients to analyze the disruptive potential of start-ups for early alliances, investments, and acquisition prospects to develop future-proof strategic roadmaps for a competitive advantage. Read our report and gather insights on the following topics:
  • Recent Unicorn trends
  • Unicorns in 2022
  • Future Unicorns
  • Start-ups to watch out for
Start-up ecosystem outlook by top geographies
by GlobalData
Enter your details here to receive your free Whitepaper.

The round was led by Weatherford Capital, who was joined by Anthemis, Tower IV, Narya, SignalFire, Greycroft, HSCM Ventures, Acrew, AmFam Ventures, and Gaingels.

Branch plans to use the capital for expediting its national launch.

Currently, the insurtech has a presence in 28 states, having expanded into nine new states so far this year.

Using the funding, the firm also plans to scale its distribution strategy covering agency, embedded, and direct channels.Weatherford Capital principal David Seider said: “For too long, the insurance industry has been plagued by an overly expensive approach to customer acquisition, driving up the price of insurance.

“Branch’s model is helping to ensure insurance is accessible for all.”

Launched in 2019, Branch claims to make home and auto insurance frictionless by leveraging technology, automation and data.

It has tie-ups with industry players such as Homepoint, OpenRoad Lending, and SimpliSafe, among others.

In February this year, the insurtech partnered with Everspan Insurance Company, making the latter its policy underwriter in 11 US states.

Over the past one year, Branch is said to have posted a 1300% year-on-year surge in annualised written premium and a 400% jump in staff headcount.

The firm raised $50m in Series B investment led by Anthemis Group a year earlier.

A public benefits corporation, Branch also runs a reciprocal exchange, helping policyholders become the actual owners of policy premiums. 

Branch cofounder and CEO Steve Lekas said: “We believe that by reintroducing the power of community through data and technology, we can lower the cost of insurance while restoring it to its original intent: a force for communal good.”

Free Whitepaper
img

Disruptive start-ups to watch out for

2021 was a record-breaking year, with more businesses breaking into the billion-dollar club. Many start-ups have achieved or retained the unicorn status by the end of the year to reflect nearly a fivefold growth from that in 2020. This boom can be linked to a financing frenzy spurred by the quick adoption of technology and innovative solutions by start-ups gaining traction in response to the pandemic. However, the start-up ecosystem is now facing turbulent times for fundraising as investors seek long-term business strategies, valuations, and a route to profitability amid uncertain market circumstances. Nevertheless, 2022 has the potential to carry forward the momentum with multiple entities having a fair chance of being in the right place when aided by the right technologies. GlobalData leverages the power of alternative data to examine the health of start-ups across multiple dimensions including the quality of their innovations, market presence, and the funding they can attract. This helps our clients to analyze the disruptive potential of start-ups for early alliances, investments, and acquisition prospects to develop future-proof strategic roadmaps for a competitive advantage. Read our report and gather insights on the following topics:
  • Recent Unicorn trends
  • Unicorns in 2022
  • Future Unicorns
  • Start-ups to watch out for
Start-up ecosystem outlook by top geographies
by GlobalData
Enter your details here to receive your free Whitepaper.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Life Insurance International