Buckle Corp. has nailed down $60 million in new venture capital financing, money that will help scale its full-stack insurance-as-a-service platform for the gig economy.
“This new raise helps validate Buckle’s positive momentum across its insurance programs and reinforces our belief in the opportunity for growth the company faces today,” Marty Young, co-founder and CEO of Buckle, said in prepared remarks.
He said that the company is focused on expanding its digital insurance platform nationally through its “capital efficient, multi-carrier strategy” in order to give a wide range of insurance options for U.S. gig economy workers, “many of whom have been considered essential workers throughout the pandemic.”
Volery Capital Partners led the Series B financing, though Eldridge, Assurant Ventures and HSCM Bermuda also participated, along with other insiders.
As part of the funding, Volery Capital Partners will join Buckle’s Board of Directors. In addition to the $60 million in Series B financing, HSCM Bermuda also expanded the company’s surplus term loan from $10 million to $20 million to provide additional capital to support the premium growth of Buckle’s Gateway Insurance Company. Buckle has closed over $100 million in debt and equity funding since it launched in 2019.
The Company’s core hybrid auto insurance policy for rideshare and delivery drivers uses data from Transportation Network Company (TNC) platforms to underwrite policies. By using rideshare and delivery data instead of credit scores, the policy helps close the gap created by conventional insurance policies that leave gig workers underinsured or with higher premiums, the company claims.
Buckle has also acquired and recapitalized three admitted insurance carriers: Gateway Insurance Company, American Service Insurance Company, and American Country Insurance Company. Through its multi-carrier insurance platform and strategic MGA partnerships, Buckle expanded insurance products for gig workers to include traditional taxi, limousine, rideshare fleets, and non-standard personal auto.
The New Jersey-based company began life as an MGA with a rideshare insurance policy combining personal and commercial coverage in collaboration with Munich Re’s Digital Partners. That program as expanded in 2020 through a partnership with rideshare company Lyft.
In addition to launching additional insurance products and partnerships, Buckle has recently introduced an auto financing product to its Members in Georgia with plans to expand credit to other states soon.