Luge Capital Leads $5.35M Investment in Finaeo

We are thrilled to announce that we’ve completed an investment in Toronto-based InsurTech company, Finaeo. We believe Finaeo will forever change the insurance experience for advisors, their clients and carriers alike.

If you’ve ever purchased life insurance, you know how cumbersome the process is today. While meeting with an advisor for about an hour, you’re given an estimated price based on your “health” and asked to fill out a booklet with a pen, or you’re sent a pdf to complete your entire medical history. After handing over your most sensitive information (kept in their briefcase or their inbox), your advisor manually re-enters those details into an excel file and sends an email to the insurance company for processing. Two or three weeks later, a medical examiner shows up at your house and asks you to pee in a cup and pokes you with a needle. Two or three weeks after that, you get a letter in the mail saying you’re covered (or not). Total nonsense for all parties.

We believe Finaeo is shaping the future of the insurance industry. On the front end, Finaeo provides insurance advisors with a set of simple tools to manage their daily operations, securely onboard their clients and automate compliance.

But the real magic is on the back end. By building a proprietary network of insurance carriers, Finaeo is creating the world’s first digital marketplace that provides advisors with real-time application submissions, real-time adjudication, real-time status updates, all built on an intelligent underwriting engine. Imagine a world where a meeting with your advisor surfaces ten potential products in seconds with a recommendation for the one that is most suitable for your needs. Imagine that by the time you walk out the door, you are fully covered. Better yet, imagine that personalized insurance products are proactively offered to you based on your life events (marriage, children, home purchase, etc). Finaeo is building that intelligent future.

Co-founders, Aly Dhalla and Donald Chu, have the right pedigree to execute on the mission. They both have extensive backgrounds on the front lines of the insurance industry and have a deep understanding of the required tech, distribution and regulatory framework. They have a clear vision, and are now well equipped to push the throttle.

Our investment in Finaeo, alongside, RGAx, Rising Tide Ventures inovia capital and Impression Ventures will help the team further drive product development, customer acquisition, and expand into the US market. We’re excited to be part of the journey, and we welcome Finaeo into the Luge portfolio.

Stay tuned for more exciting news from Finaeo very soon!

-Karim Gillani, General Partner

About Luge Capital
Luge Capital is a venture capital fund focused on early stage fintech and artificial intelligence (AI) applied to financial services. We invest in talented teams shaping the way the world interacts with financial services. Luge looks for founders that improve customer experiences, remove complexity, make financial institutions more efficient and use data-driven methods for decision-making. We work closely with entrepreneurs and their teams in their efforts to build world-class companies by sharing our extensive network, experience and industry insights. — Building fintech champions.