It’s been a big week for funding announcements in Montreal.
Following news that security workforce manager TrackTik raised $7 million, and the announcement of Lightspeed POS’s US$166 million Series D, there’s some good news from the insurance tech (insurtech) sector.
Covera Technologies Inc. has raised a $1 million seed round led by Ferst Capital Partners and joined by angel investors. The company had previously raised $500,000 in pre-seed funding, bringing the total capital raised by Covera to $1.5 million.
Founded in 2016 by CEO Scott Loong and CTO Paul O’Reilly, Covera develops technology that helps customers automatically re-shop their insurance policies.
“No one should be allowing their insurance to automatically renew – there are almost always benefits to shopping around” said Scott Loong, CEO of Covera. “Covera provides everyday Canadians with a non-conflicted and technology-first approach to improving their mobility in the market – gone are the days where Canadians are trapped by the boring process of shopping. Covera handles it for you, year-after-year, and gets you the best value in the market when your home or auto insurance expires.”
Currently, 80% of Canadians allow their insurance to automatically renew when it expires rather than shop around for alternatives or undergo the frustrating and time consuming insurance renewal process. This leaves millions under protected or paying too much. Covera helps customers by automatically shopping for home and auto insurance every year. It only takes a few minutes to sign up, after which Covera uses data and their proprietary algorithms to find insurance alternatives that can be easily purchased with a click of the mouse.
You’ve got 99 problems, insurance shouldn’t be one of them. Sign up and get an invite to Covera before we launch. https://t.co/vitlGOQVTO
— Scott Loong | Covera (@getCovera) August 4, 2017
Covera expects subsequent funding to bring the total amount raised to $2 million by November.
“There is an enormous opportunity for disruption in P&C insurance distribution and Covera is innovating by effectively leveraging data and AI to gain insights. Covera is using a unique go-to-market strategy by targeting the insurance renewals space. Ferst Capital Partners is proud to be leading this investment in an industry that has gained global traction whereby Canada has lagged behind,” said Dominique Ferst, Managing Partner at Ferst Capital Partners.
The new financing will be used to support growth and user acquisition initiatives, drive geographic expansion Canada-wide, and build the team in order to accelerate product development.