Venture Capital: Insurtech Branch Lands $147M, Joins Unicorn Club
Branch reported 1300% growth YoY in annualized written premium and a 400% increase in employee growth in the last year.
Home and auto insurance provider Branch uses data and technology to make its products better and more affordable for all. The insurtech announced today its $147 million Series C funding led by Watherford Capital with participation by new and existing investors including Acrew, AmFam Ventures, Anthemis, Gaingels, Greycroft, HSCM Ventures, Narya, SignalFire, and Tower IV. (CISION PR Newswire)
Launched in 2017, Branch has cumulatively raised $229.5 million and is now valued at $1.05 billion as per the latest Round C. It claims it has saved its customers (“members”) an average of $548 annually since 2019.
“Consumers are frustrated by escalating insurance costs resulting from antiquated business models and complex processes,” said Steve Lekas, Branch Cofounder and CEO. “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.”
Using ‘bundling,’ Branch is able to reduce its costs of procuring insurance business. For this it relies on partnerships that generate insurance sales at the source – for example, with key industry players across the mortgage, auto, and home security industries including Homepoint®, OpenRoad Lending®, and SimpliSafe®.
The savings through bundling are relevant at the current time when inflation is running at multi-decade highs.
In 2022, the startup has already struck out on expanding into nine new states. It said in a statement that its ‘frictionless’ insurance is now available in 28 states.
Branch will use the new funds to accelerate its national rollout while scaling its differentiated distribution strategy which includes direct, agency, and embedded channels.
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