The investment, led by Spark Capital and supported by existing investors Dawn Capital, King River Capital, and G Squared, defies the prevailing tech funding slowdown.
The newly acquired funds will enable Cover Genius to accelerate its growth initiatives and further invest in state-of-the-art technology. This includes enhancements to its digital insurance distribution solutions, implementation of Artificial Intelligence (AI) for claims processing, and broadening the range of protection solutions available on the platform.
These advancements in technology and expanded solutions will bolster both new and existing partnerships, fostering the development of unique offerings. These offerings will provide digital companies with innovative methods to distribute protection products, such as Cancel For Any Reason (CFAR), Delay Valet (providing compensation for travel disruptions), Protection Pocket, and various other protection options.
Despite challenges in the investment landscape, Cover Genius has demonstrated exceptional growth and expansion over the past year. The company achieved an impressive 107% year-over-year revenue growth in 2023, alongside maintaining a robust 145% Net Revenue Retention rate. This success can be attributed to Cover Genius’s innovative global distribution platform, XCover, which has facilitated partnerships with some of the world’s largest digital businesses.
Through these partnerships, Cover Genius has provided embedded protection to over 30 million customers worldwide, cementing its position as a frontrunner in the insurtech industry. The Series E funding round will further fuel the company’s momentum, enabling it to continue innovating and expanding its reach in the rapidly evolving digital insurance landscape.
“The display of trust from our investors highlights the resilience of our embedded business model and potential for growth, particularly as we strategically focus on key markets like travel, retail, ticketing, and logistics,” said Angus McDonald, CEO and co-founder of Cover Genius. “Our collaborations with well-known brands, including Uber, Ryanair, and eBay, demonstrate our unique ability to create customer-centric protection solutions backed by technology, policy innovation, and industry expertise.”
Spark Capital, a US-based VC firm recognized for partnering with category-defining technology companies like Twitter, Coinbase, and Slack, spearheaded the Series E. In addition, showing their continued support for the business, existing investors Dawn Capital, King River Capital and G Squared also participated. These varied investments underscore Cover Genius’ position as a global frontrunner in the insurtech industry.
“Cover Genius’ technology platform, global presence and focus on digital claims initially caught our attention years ago,” said James Kuklinski, General Partner at Spark Capital. “By tackling common insurance obstacles such as limited market coverage, lengthy claims processes, and a lack of product diversity, the company has evolved into a category leader. We couldn’t be more excited to partner with the company as they continue driving more value to partners and a best-in-class consumer experience.”
