Aug 11, 2021
The Backstory of Cavalry x Afilio
by Rouven Dresselhaus & Martin Janicki
In the summer of 2018, Afilio came to our attention through two different channels — both were angels who had already invested. What I found straight away odd and highly unusual was that we were dealing with two founders in their early 20s, fresh out of university — and the topic they had taken on was financial planning and retirement. One or the other would think: “There are so many ‘cool’ topics!”. But the team knew exactly what they were doing — and that still carries through today.
The three founders Till, Philip and Richard had systematically explored areas that were ripe for disruption. This aspiration and focus alone would have been reason enough to write a check instantly. In addition, there was this intrinsic motivation through personal experience. In a difficult time, you don’t wish anyone to be burdened with bureaucracy either. And that is exactly what Till, Philip and Richard wanted to tackle.
Finding simple solutions for difficult situations
There are just these events in life that don’t happen so often, which is why one hardly deals with them in advance: last wills, advance directives, etc. On the other hand, they are necessary, so that everyone has to go through them when the going gets tough. But because that’s the way it is, the incentive for providers to break down barriers here and deal with the user experience is not that high.
Before Afilio, you had to go to a lawyer or a notary to write documents like your living will or power of attorney. To arrange insurance, you had to talk to representatives. And if something happened in the family, such as long-term care or death, you were still on your own. With Afilio, families can settle all these issues in one place — with simple explanations and completely digitally.
If the product is right, people will gladly pay for a freemium
Already at the beginning, an early traction was noticeable. There was no mature product, no sophisticated pricing model, no revenue. There was solely a free doc generator that people could support through voluntary donations. And that worked! People donated. And they continue to do so! To date, Afilio users have donated a total of 6 million euros for a — mind you — free service! The best proof of how outstanding the product is.
The conditions were excellent. Demographic change is a variable that affects so many areas of society. But it works very slowly, which means that the opportunities are not immediately obvious. Digitisation, on the other hand, is progressing enormously fast. Can these two trends be reconciled? Afilio shows that it works very well.
Pioneering in inclusive design
What is absolutely necessary for success is a sense for excellent, customer-centric UX and UI and a correspondingly deep understanding of the target audience. With its product, Afilio caters to both the 20-year-old career starter and the 100-year-old will-writer. Thus, Afilio were absolute pioneers in the field of inclusive design. Through countless tests and based on a myriad of customer experiences, they have built a product that is accessible to people of all ages and genders, putting digital literacy behind.
The Team-VC fit
Last but not least — and I can’t stress this component enough: We clicked immediately on a personal level. For us at Cavalry in particular, this is of immense importance, because in this early stage we place a lot of value on being approachable and available to the founding team at all times. Of course, you want to get along well in this scenario.
I often and fondly remember the first closing dinner in September 2018: the team was very keen to create a pleasant family-like and homely atmosphere. They served homemade pumpkin cream soup in the Afilio office. Down-to-earth, pleasant, open. This plus the excellent team with an exciting idea — it just felt right straight away.
This is just the beginning
A lot has happened since then. In 2020, Afilio saw their active subscription volume grow 611% YoY. They also provide access to digital document creation and advice for 2 million registered users through their freemium option.
Afilio’s software provides personalised expert recommendations for insurance cover, providing tariffs without commissions which are up to 15% cheaper than comparison sites. Users can also create and officially register legal documents with Afilio Plus, including living wills, power of attorney, and pension provisions. This allows family members and providers to view documents in a single location, simplifying the experience and reducing the administration burden for families.
Today, Afilio announced its Series A financing in the amount of 11 million euros. The financing round is led by CommerzVentures. Speedinvest and existing investors Cherry Ventures, Cavalry Ventures and Mutschler Holding also participated.
Till, Philip, Richard — it has been a pleasure working with you so far! And I look forward to many more years! Congratulations on the great round!
