FinTech News
Insurtech Startup CoverTree Raises $13 Million
An insurtech firm with a unique niche has raised a new round of funding.
About the round:
This week, CoverTree announced that it recently raised $13 million. The Series A was led by Portage. AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and others also participated. In total, the company has now raised $23 million, including an $8 million seed round in 2022.
With the new funds, CoverTree plans to expand its enterprise suite. This includes launching a resident insurance management software called Maple, a binding and underwriting platform called Bonsai, and an automated quoting system called Sequoia. The company also plans to grow its product offerings and market presence as it works to reshape the home insurance sector.
About CoverTree:
CoverTree is a digital insurance site that specializes in policies for manufactured homes. The Detroit-based startup offers automated underwriting and allows customers to retrieve quotes from their website. Currently, CoverTree’s manufactured home product is available in 14 states: Arizona, Michigan, Indiana, New Mexico, Ohio, Illinois, Tennessee, Texas, Arkansas, South Carolina, Kansas, Oklahoma, Georgia, and Alabama.
What they’re saying:
Discussing CoverTree’s latest round, the company’s co-founder and CEO Adarsh Rachmale said, “With the continually changing homeownership industry, we are excited to continue expanding our services to the growing manufactured housing industry: we believe this is the future of how all Americans will live.”
Rachmale continued, “This investment is a testament to the value we bring to homeowners by redefining the insurance experience. With these funds, we will continue to innovate, expand our reach, and ultimately provide even more individuals with peace of mind through our high tech and accurate home insurance solutions.”
Additionally, commenting on Portage’s investment, the firm’s co-founder and CEO Adam Felesky stated, “CoverTree’s focused approach on manufactured home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche markets. With a growing market and the need for affordable housing greater than ever, we are confident in CoverTree’s ability to drive positive change in the insurance landscape and are excited to support their journey.”
My thoughts:
The great thing about FinTech and insurtech is that startups are really able to find a niche. That’s definitely the case with Covertree. While there are a growing number of large firms that have revolutionized the insurance industry, Covertree’s specificity makes them special — which is why I’m excited to see them succeeding. Hopefully this new round of funding will allow them to continue growing and helping a market that I have no doubt is underserved.
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