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December 21, 2021

Novea raises $55m in funding for Jacana Insurance

American fintech software company Novea has raised $55m in equity and debt funding from Swiss-based Newpoint Financial Group.

Novea will use the $50m equity funding to strengthen the capital position of its wholly-owned insurance subsidiary Jacana Insurance and proprietary user app, Jacana Warranty.

As part of the deal, Newpoint will receive 10% of Novea’s common stock and convertible redeemable preferred shares.

The remaining $5m has also been provided by Newpoint as a five-year, revolving line of credit, which will be used for corporate operational and overhead expenses.

Captive speciality insurer Jacana Insurance offers warranties and service contracts on consumer products and electronics.

Novea CEO Jim Quinlan said: “With this funding, we not only ensure moving Novea to the next level, but we are able to reward our existing long-term investors with a significant appreciation of their Novea shares as this transaction imputes a $500m market value of Novea.

“Over the past couple of months, we have been closing multiple new customer contracts which represent significant sales growth for 2022 and we are looking to close out this year’s sales pipeline with contracts value in excess of $10 million in potential new sales.”

Newpoint CEO Keith Beekmeyer said: “2021 has been a landmark year for Newpoint having closed $250m in solvency capital investments into multiple insurance and reinsurance companies throughout Europe and the United States.

“We believe that Novea’s technology and proprietary claims processing will redefine the consumer warranty marketplace and we are looking forward to a long term mutually prosperous partnership with them.”

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