Cover Genius Closes $80M in Series E Funding as Investors See $700 Billion Opportunity in Embedded Protection
May 15 2024 - 11:01AM
Cover Genius, the leading insurtech for embedded protection, today
announced its $80 million Series E funding round. Despite the tech
funding slowdown, the round was led by Spark Capital with support
from existing investors, including Dawn Capital, King River Capital
and G Squared.
This funding follows a remarkable year of sustained growth and
expansion for Cover Genius and its award-winning global
distribution platform, XCover. In 2023, the company achieved a
remarkable 107% year-on-year growth and maintained an impressive
145% Net Revenue Retention by partnering with some of the world’s
largest digital businesses to provide embedded protection to over
30 million customers worldwide.
“The display of trust from our investors highlights the
resilience of our embedded business model and potential for growth,
particularly as we strategically focus on key markets like travel,
retail, ticketing, and logistics,” said Angus McDonald, CEO and
co-founder of Cover Genius. “Our collaborations with well-known
brands, including Uber, Ryanair, and eBay, demonstrate our unique
ability to create customer-centric protection solutions backed by
technology, policy innovation, and industry expertise.”
Spark Capital, a US-based VC firm recognized for partnering with
category-defining technology companies like Twitter, Coinbase, and
Slack, spearheaded the Series E. In addition, showing their
continued support for the business, existing investors Dawn
Capital, King River Capital and G Squared also participated. These
varied investments underscore Cover Genius' position as a global
frontrunner in the insurtech industry.
“Cover Genius’ technology platform, global presence and focus on
digital claims initially caught our attention years ago,” said
James Kuklinski, General Partner at Spark Capital. “By tackling
common insurance obstacles such as limited market coverage, lengthy
claims processes, and a lack of product diversity, the company has
evolved into a category leader. We couldn’t be more excited to
partner with the company as they continue driving more value to
partners and a best-in-class consumer experience.”
The fresh capital will allow Cover Genius to expedite its growth
plans and continue to invest in cutting-edge technology, including
improved digital insurance distribution solutions, deploying
Artificial Intelligence (AI) claims handling and expanding the
protection solutions available on the platform. The improved tech
capabilities and expansion of solutions will support new and
existing partnerships, driving the creation of distinct solutions
that offer innovative ways for digital companies to distribute
protection products, such as Cancel For Any Reason (CFAR), Delay
Valet (payment for travel inconveniences), Protection Pocket, and
other types of protection.
Since its inception in 2014, Cover Genius has advanced insurance
distribution through its award-winning global distribution
platform, XCover. By leveraging AI and data-driven insights, the
platform enables partners to provide a wide range of insurance and
other types of protection across various market segments. With a
focus on customization, Cover Genius offers both bundled and
standalone solutions, resulting in increased conversion rates and
enhanced revenues for global businesses. By delivering highly
relevant protection options at the most suitable prices and times,
the company ensures customer satisfaction backed by an
industry-leading post-claims Net Promoter Score (NPS).
About Cover GeniusCover Genius is the global
insurtech for embedded protection. Through XCover, its
award-winning global distribution platform, it protects the
customers of the world’s largest digital companies with seamless,
end-to-end experiences. Licensed or authorized in over 60 countries
and all 50 US States, the insurtech enables partners to embed and
sell multiple lines of insurance and other types of protection,
resulting in an industry-leading post-claims Net Promoter Score
(NPS) and more than 30 million happy customers.
For more information, visit covergenius.com.
About Spark Capital Spark Capital invests in
products we love by creators we admire, including Affirm,
Anthropic, Cruise, Discord, Deel, Oculus, Plaid, Scale AI, Slack,
and Twitter. We know there are no playbooks or formulas for success
and are here to help founders win their own way. We invest across
all sectors and stages, and work out of San Francisco, Boston, and
New York City.
For more: sparkcapital.com
For media inquiries, please contact:Shelley
PetriDirector of Global Communications, Cover
Geniusshelley.p@covergenius.com