Vouch, a digital business insurance platform for startups, has closed on a $90 million round of financing, with plans to use the investment for new products and embedded insurance for its various startup partners. Hiring is also in the cards.
“Our recent rounds of funding ensure that Vouch can better serve startups,” Sam Hodges, Vouch’s CEO and co-founder, said in prepared remarks. “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.”
SVB Capital and Ribbit led the Series C round, which also includes Allegis Group, Sound Ventures and SiriusPoint.
SiriusPoint, a global specialty insurer and reinsurer, said it is also forming a strategic partnership with Vouch in the wake of its investment. That relationship calls for SiriusPoint to provide multi-year underwriting capacity for Vouch, an InsurTech MGA that has raised $160 million since its 2018 launch.
Vouch’s platform provides business insurance for startups and high growth tech companies. That breaks down to Vouch Insurance Services, its MGA that develops proprietary coverages for those clients, and Vouch Insurance Company, an authorized carrier that reinsurance policies offered by the MGA along side “other world class reinsurers,” a spokesperson explained to Carrier Management via email. Munich Re was previously Vouch’s reinsurer. The company continues to partner with State National Insurance Company and its affiliated carriers to deliver Vouch products nationally.
Vouch, which employs 125 people, has offices in San Francisco and Chicago, where much of its staff are based, though there are some remote employees.
The company claims to be the “preferred business insurance provider” for companies including Brex, Carta and WeWork customers.
As part of its funding announcement, Vouch unveiled a number of new products and services for its startup clients. They include: Work From Anywhere Insurance – modified business property insurance that can insure up to $500,000 in limit per occurrence; broad cyber coverages for tech companies including more comprehensive cyber crime cover; comprehensive coverages for early to mid-stage startups, and embedded insurance.
Additionally, Vouch Insurance Company added three veteran insurance executives to its board:
Cynthia Powell, former Chief Risk Officer of State Auto Insurance, Robert Byler, former CEO of Schinnerer Group (now Victor), and Mark Herman, former President and COO of CNA Specialty.
Sources: Vouch, SiriusPoint