CoverWallet Raises $18 Million Series B After Insuring Thousands of Businesses
And we are also expanding our executive team
I’m excited to share that CoverWallet has raised $18.5 million in Series B funding, led by Foundation Capital, with participation from our previous investors Union Square Ventures, Two Sigma Ventures, Index Ventures, and CV Starr. The new funding will further our mission to reinvent insurance for small businesses delivering an experience that is instant, simple and transparent. And we do it combining data, design and technology. You can read the full press release [here].
Since launching in 2016, CoverWallet has secured over $30 million in venture capital funding. As part of this recent financing, Charles Moldow, General Partner at Foundation Capital, joins John Buttrick from Union Square Ventures on our board of directors. Rodolfo Gonzalez, Partner at Foundation, joins as board observer.
We are thrilled to have Foundation as investor, well known for their early tech investments in Netflix, TubeMogul, Sunrun, Chegg, SilverSpring, and Responsys (all IPOs). And if you had to name the top investors in the next generation of financial services (insurance and banking) startups, Charles Moldow would definitely be among the top of the list, leading investments in LendingClub, OnDeck, LendingHome, Motif, AuxMoney, or HealthIQ.
In evaluating our investment options, we picked Charles and Foundation because we are very aligned with their views of our industry. I cannot think of a better marriage. In Charles’s paper, “The Next Big Ideas — Financial Technology; where to look and what to look for”, an essential reading on how to reinvent financial services, he points out that financial services are inefficient and unloved (millennials are giving up on traditional banks and insurance with 70% preferring a trip to the dentist). Clearly, not a recipe for success, and instead an opportunity for new tech entrants if they deliver an experience that is simple, transparent, frictionless and instantaneous. If you have listened to any of my talks about the insurance industry and the opportunity, this should sound more than familiar.
The funding announcement is happening in parallel with the addition of two C-level executives, Paul Rosen joining as COO, and Pedro Sanudo as CMO. During the last 6 years, Paul was CSO at OnDeck, a company that shares a lot of similarities with Coverwallet. Paul grew annual revenue at OnDeck from $10 million in 2011 to $300 million-plus this year and was crucial in the small business lender’s transition from a startup to IPO. Pedro is a graduate from Harvard and MIT (where I met him) and seasoned tech entrepreneur and marketer. He has led marketing teams at Electronic Arts, Carto, Nintendo and Yahoo. Pedro is a long time friend and we already worked together at my previous company, Contactive, until our acquisition by Fuze.
I couldn’t be more proud of the team, and we couldn’t be more excited for what the future holds. On behalf of all of us here at CoverWallet, we are humbled to have the opportunity to work with such incredible customers, investors, employees, and partners. We have been given the opportunity to pursue a big dream and the next few years will be a lot of fun. Thank you for your support!