Spot, an Austin, Texas-based InsurTech providing digital, on-demand injury insurance, has announced it has raised $17.5 million in funding, including $15 million in equity and $2.5 million in debt. The round was led by GreatPoint Ventures(San Francisco), with participation from Montage Ventures (Menlo Park, Calif.), Mutual of Omaha (Omaha, Neb.), MS&AD (Tokyo), and Silverton Partners (Austin, Texas). Mike McCormick, Principal at GreatPoint Ventures, will join Spot’s Board of Directors. Spot reports that it will use the new capital to grow the team, forge new partnerships, and increase marketing efforts.
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Spot describes itself is the first company to provide customized injury insurance policies through strategic partnerships with companies and organizations, allowing partners’ customers and communities to easily purchase coverage when they sign up for activities or memberships. The company pioneered “on-the-mountain” coverage for skiers and snowboarders, which can be purchased along with a lift ticket, and “on-the-bike” coverage for members of cycling organizations. Spot’s partners include USA Cycling, Powder Mountain, USA BMX, National Ski Patrol, and athleteReg. Spot reports that it already covers tens of thousands of Americans, including some of the world’s top pro athletes, such as snowboarder Travis Rice, cyclist Ayesha McGowan, mountaineer Adrian Ballinger, skateboarder Monica Torres, and skier Julian Carr.
“Health insurance across America is broken and high medical costs are causing Americans to go into debt and even file for bankruptcy,” comments Matt Randall, co-founder and CEO, Spot. “Monthly premiums on health insurance are much higher than what the average American can afford, so Spot is rethinking insurance and offering a new alternative for today’s consumers, while finding ways to help Americans live their lives without going broke. Our team is providing peace of mind for as little as $25 per month, and driving awareness of much-needed injury insurance coverage options.”
As part of its direct-to-consumer offering, Spot provides month-to-month accidental injury coverage starting at $25/month, which can be used with or without traditional health insurance. Plans cover the actual costs of medical bills, up to $20K per injury. Fully digital, Spot conveniently allows customers to sign up in just one minute for immediate coverage at any time, so they can get the treatment they need at any licensed physician, hospital, or urgent care clinic.
Filling Health Coverage Gaps
“Spot is a fundamental fix to the broken U.S. health insurance system, which currently leaves so many people physically and financially ruined,” said Mike McCormick, Principal, GreatPoint Ventures. “I believe Spot can fill health coverage gaps for millions of Americans who need better healthcare, and I’m honored to support the company’s mission.”
