Canopy Connect is a leading provider of digital infrastructure designed to empower consumers with control over their personal information while streamlining data collection processes for businesses. The company’s technology facilitates permissioned sharing, allowing users to dictate how their data is used by various entities.
Launched four years ago by its CEO and founder, Tolga Tezel, the insurtech now boasts over 10,000 users, has completed its Series A investment round and is scaling fast.
Tell us about your background and why the startup space attracted you.
I’ve always been drawn to startups, and I think that interest has been with me for a long time. I attended the University of Waterloo in Canada, where a big part of the programme is the internship experience – you complete six internships before graduating. I wanted to use these internships to explore different areas and figure out what I was passionate about.
One of my internships was with a startup, which I joined in early 2011 during my first year of university. It happened to be an insurtech startup, and that experience made me fall in love with the startup environment. I learned so much, so quickly, even though I felt it over my head at times. But being surrounded by knowledgeable people helped me develop skills rapidly, just by diving right in. After that first four-month internship, I was hooked on the startup world, and I’ve worked in startups ever since.
What is is about startups that you like so much, as opposed to the conventional corporate route?
I find it really exciting to be part of small teams that are tackling problems no one has solved before. Being around smart people who you can learn from is incredibly valuable, and I believe startups offer the best environment for that kind of growth. Learning and development have always been important to me, and as an engineer, I felt that startups were the perfect place to achieve that.
While I was finishing my degree, I worked for a startup that was eventually acquired by Dropbox, which brought me to California. I spent a few years at Dropbox, but then I developed an interest in FinTech and technology related to personal finance. I wanted to work in this area because I thought it would give me the chance to help people make better financial decisions and improve their financial well-being.
I wanted to work on something that would make a meaningful impact and feel fulfilling, like doing something good for society. That led me, in 2018 and 2019, to join a FinTech startup called Nova Credit. The company helps newcomers get fair access to credit using their international data, which was a powerful experience for me. I saw firsthand how you could build a business that empowers consumers to control their own information and use it to achieve better financial outcomes—like getting fairer access to credit by leveraging their own data.
I find it really exciting to be part of small teams that are tackling problems no one has solved before. Being around smart people who you can learn from is incredibly valuable, and I believe startups offer the best environment for that kind of growth.
Tolga Tezel
What I loved about this was the idea of consumers being in the driver’s seat, choosing to share their information with businesses to save time and achieve better outcomes. It made me realise that there’s a lot of valuable information about us locked away in various databases, whether in banks, insurance companies, or other institutions. I started thinking about other ways we could help consumers unlock this data to improve their financial situations.
How does insurance and insurtech play into all this?
At that time, I wasn’t specifically thinking about insurance, but I liked the idea of helping people use their own critical information for better outcomes. Then, I had a chance conversation with a friend’s mom, who was an insurance agency owner. She told me how she would drive to her clients’ houses to help them log into their online insurance accounts because they often didn’t know where to find the necessary information to get a quote. This was a huge barrier, and many potential clients would drop off because they couldn’t easily access their insurance details.
She suggested it would be great if there were a way to automate this process. Given that connecting bank accounts to apps like PayPal or Venmo was already common by then, I thought people should be able to connect their insurance accounts in the same way. So, as a builder, I spent a weekend creating a prototype to show to insurance agents. The feedback was incredibly positive, even for a rough prototype, and that’s how it all started.
How did the prototype develop from that point onwards?
The initial prototype I built over a weekend was very basic—it didn’t look great, but it got the idea across. The concept was simple: if a consumer could quickly, easily, and securely share their insurance information without having to dig up documents, how would that impact the sales process for insurance agents? I would demonstrate the consumer journey, showing how they could log in to their carrier and share their details in just 20 seconds. The response from insurance agents was overwhelming—they were amazed and kept saying this would be a game changer for them.
I started reaching out to more insurance agents. I noticed how many insurance agency offices were in my area, so I began walking into them with my laptop, showing the prototype to anyone who would listen. I also emailed agents and tried to connect with as many as possible.
Tolga Tezel
Many agents told me that getting this information from clients was like “pulling teeth,” and they repeated this over and over. They were genuinely excited about the potential of this tool. Encouraged by this feedback, I started reaching out to more insurance agents. I noticed how many insurance agency offices were in my area, so I began walking into them with my laptop, showing the prototype to anyone who would listen. I also emailed agents and tried to connect with as many as possible.
At that time, I was an engineer by trade, with little experience in sales. I saw this as an opportunity to learn how to sell, talk to customers, build something they needed, and then refine it based on their feedback. The enthusiasm I received for a simple weekend project made me feel like I was onto something worth exploring further, so I kept working on it.
What was the timeframe and how many iterations of the system did you go through until you realised you had a sellable product?
In the very early days, our main focus was simply getting people to use the product and proving its viability. I can’t recall exactly how long it took to make the first sale—likely just a few weeks—but it was fairly quick. At the start, when selling a new product, you often make concessions to gain initial traction. Our primary goal was to determine if this concept would work.
Back then, connecting bank accounts to financial apps was common, but the idea of connecting insurance accounts was completely new. We had to pitch the idea that just like people regularly connect their bank accounts to apps, they could also connect their insurance accounts in a quick, 10 to 20-second process. The challenge was to see if consumers and insurance agents would actually use this and prefer it over the traditional method of digging up documents and exchanging details over the phone.
We needed to validate several assumptions: Would consumers find it easier? Would insurance agents find it useful? We knew there were various businesses—like insurance sales, automotive dealers, and mortgage lenders—that needed access to insurance details, but if insurance agents didn’t find this tool helpful, it likely wouldn’t succeed in other industries either.
So, we started by putting the product in the hands of insurance agents, allowing them to test it with their clients. We discovered that consumers did prefer connecting their insurance accounts rather than the hassle of gathering documents and having lengthy phone conversations. Proving this was crucial, and once we gathered enough data showing that both consumers and agents favoured this approach, it became easier to grow and expand the product.
How did you approach growth and development?
The company was founded in February 2020, starting with just myself. Our first hire came through a connection made by one of our early investors. This investor, a co-founder of Robinhood with a strong track record, recommended a standout candidate from his girlfriend’s coding bootcamp. After a successful interview, we brought him on board.
In the early days, we were very cautious and deliberate with our hiring. Our primary focus was on building the best infrastructure possible. One key strategy was to prioritise the development of robust, reliable, and secure infrastructure before investing in design. We intentionally deferred design improvements until our infrastructure was top-notch, as we believed that connectivity, speed, reliability, and data richness were more critical to our initial success than the design.
This approach, though hard to compare with alternative strategies, was driven by our commitment to providing exceptional infrastructure. We aimed to establish a strong foundation that would meet market demands for connectivity and performance. Once we achieved that, we turned our attention to enhancing design and user experience. This focus on infrastructure first has been a significant factor in our success and has helped us build some of the best carrier connectivity available today.
What were the technical hurdles and challenges that you faced in getting Canopy Connect launched and established in the marketplace?
Honestly, the biggest challenges we face aren’t just technical; they’re about building an infrastructure where none existed before. On the technical side, the main issue is that insurance carriers represent data in many different ways. We’re creating an infrastructure that can standardise and normalise property and casualty insurance data from all carriers in the U.S., not just the major ones but also the smaller, regional ones. The problem is that each carrier might represent the same piece of information differently, so we have to figure out how to map that data consistently across the board.
Once we’ve structured and normalised this data, we then have to ensure it’s compatible with the tools our customers use. This means they can pull the data from the source and seamlessly integrate it into their workflows without needing to manually enter every detail. Creating a unified insurance profile that works across different carriers and tools is tough, especially since some high-volume carriers use their own data formats that don’t align with industry standards like ACORD.
While these technical challenges are significant, they aren’t the only hurdles. Hiring the right team and making sure we’re focusing on the right priorities are even bigger challenges. We’re building something that hasn’t been done before in this industry. There are models in other sectors, but in insurance, we’re creating the blueprint as we go. Despite these challenges, we’ve built a team that’s covered 96% of the auto market and over 91% of the homeowner’s market across all P&C lines, making us the leader in this space.
You’ve been growing for about four years now and have scaled significantly. What strategies have driven this?
There are a few key strategies that come to mind. First, we’ve been very deliberate about hiring, never compromising on our standards, even when there’s an urgent need to fill a position. It’s tempting to make a quick hire to meet immediate demands, but I’ve seen other companies do that and it often leads to problems. Maintaining high standards for hiring is crucial because the quality of our team is the most important asset we have—more important than any technology we’ve built. Our team members shape our day-to-day decisions and ultimately the direction we take as a company.
Another critical strategy is staying in constant contact with our customers. Since we’re building infrastructure in a relatively untapped market, we’re paving the way as we go. In this kind of environment, there are many potential directions we could take, but we’ve made some key decisions early on to keep us focused. One of those decisions was to never sell insurance ourselves. As an infrastructure company, our role is to make it easy for consumers and businesses to share insurance data with the businesses they choose. If we were to sell insurance as well, it would create conflicts of interest, undermining the trust we’ve worked hard to build. And building trust is essential for creating a lasting business in this space.
As an infrastructure company, our role is to make it easy for consumers and businesses to share insurance data with the businesses they choose. If we were to sell insurance as well, it would create conflicts of interest, undermining the trust we’ve worked hard to build.
Tolga Tezel
Our growth strategy focuses on excelling at what we do best—building connected insurance infrastructure—and avoiding distractions like starting an agency or competing with our customers. This clear focus allows us to serve our clients without conflicts of interest, as they don’t have to worry about us competing with them. In contrast to other companies in insurance that sell leads or data, we never sell data. Although this wasn’t initially seen as a key differentiator, it has become one because we emphasise trust and transparency. We believe that to build a lasting infrastructure business, you must prove that you’re trustworthy and transparent in handling data, treating it the way you would want your own data to be treated.
Tell us about your investment strategy and how you’ve funded the company so far.
We completed our Series A round last year. Generally, startups often follow a pattern where they raise a certain amount of money, use it until they hit the end of their runway, and then raise more funds. I’ve always felt that this approach is risky, as it puts you in a position where you might be facing a financial crunch.
Instead, we took a different approach. When we raised our seed round and later our Series A, we aimed to put ourselves in a position where we would be financially self-sufficient. After our seed round, we worked towards becoming “default alive,” meaning that if we continued on our current spending and growth trajectory, we would reach profitability without needing additional investment.
Being default alive has been a significant advantage. It allowed us to raise funds when we were in a strong position, not out of desperation. By building a business that can sustain itself without constant external funding, we can control our destiny.
So, while we did raise a Series A to accelerate our growth and expand the team, we could have continued growing at a slower pace without it. Our strategy has been to ensure that we only seek additional funding when it truly benefits our growth and aligns with our goals.
With the growing concerns around privacy and security, especially with recent incidents involving major companies, how have you ensured that your company maintains high standards in these areas?
Privacy and security have always been at the forefront of our priorities. Personally, I’m quite paranoid about security, having dealt with sensitive data in previous roles at Dropbox and Nova Credit. From the outset, we recognised that we would be handling sensitive data and that security and privacy couldn’t be an afterthought—they needed to be integral to our design.
Even when we were just building the prototype, we approached it with security as a foundational principle. We used infrastructure as code and deployed it in a secure virtual private cloud on Amazon Web Services. This approach was influenced by my previous experience with SOC 2 certifications, so I was familiar with the necessary security measures.
We incorporated best practices from the start, including encryption at rest and in transit, and utilised private subnets. We also prepared for future audits by building our infrastructure with compliance in mind, which made the process smoother. I recommend that startups planning to undergo third-party audits build their systems with these standards from the beginning—it simplifies things later on.
In November 2021, we became the first in our category to complete a SOC 2 audit, and we’ve maintained clean audit reports ever since. This is a testament to our commitment to integrating security into our culture and operations, not just as a set of procedures but as a core aspect of our daily practices.
Maintaining security and privacy is about embedding these principles into the fabric of the company—it’s about continuous monitoring and ensuring that every aspect of our operations reflects these values. This commitment helps us build trust with our users and ensures that we meet the highest standards in the industry.
Reflecting on your journey, it’s clear that many founders face challenges and doubts, often leading them to pivot or abandon their original ideas. Did you ever experience doubts about your idea, or did you always believe in its potential?
As a founder, I believe it’s crucial to be both the harshest critic and the fiercest advocate for your company. I regularly play the role of the harsh critic, scrutinising our progress and decisions. However, I never doubted the potential of connected insurance as a category.
The concept of connected insurance seemed inevitable to me. Just as open banking has become a global standard, it’s clear that insurance—an essential part of both personal and business financial identity — would follow suit. The trend is moving away from handling documents and towards connecting to reliable sources for structured data, much like what has happened in banking.
While I was confident in the category’s viability, the challenge was ensuring that we would be the ones to build it. We knew that overcoming the hurdles and uncertainties of starting and scaling this infrastructure was part of the journey we signed up for. Ultimately, the drive to navigate these challenges and make our vision a reality is what motivates us.
Running a startup is incredibly hard work, and the journey can be much tougher than anticipated. Did you find that was the case for you?
Absolutely, that’s true. However, the experience can also be highly rewarding. In a startup, you’re navigating uncertainty and creating solutions from scratch, much like a pioneer. It’s not for everyone, but for those who thrive on learning and making an impact, it can be an exhilarating experience.
Infrastructure businesses are particularly intriguing because they remain vital in both good and bad times. During economic downturns, they help companies save money and operate more efficiently. In prosperous times, they enable faster growth. Despite broader market challenges, infrastructure businesses often remain strong. For example, even with rising mortgage rates, infrastructure-related businesses in the mortgage sector continue to perform well. Building infrastructure that handles crucial parts of consumer and business financial identities is both fascinating and important.
You mentioned earlier that hiring the right people is crucial, especially given the challenging nature of the startup environment. Long hours and shared passion and vision are key. What are your strategies for staff retention, given that it’s a significant issue in the startup world?
Retaining staff is a challenge for startups, and it’s often a broader issue in tech companies. We’ve approached this with several factors in mind.
Firstly, we ensure that team members have a sense of ownership in the company. By setting up structures that allow decision-making and execution to be spread throughout the organization, team members can take initiative and drive projects forward. This not only helps the company run more efficiently but also makes employees feel more invested.
Secondly, we understand that to attract and keep top talent, we need to offer competitive compensation. This means benchmarking our offers against industry standards using data from platforms like PAVE. We ensure that our compensation packages, especially equity options, are attractive compared to larger companies.
Thirdly, we believe in hiring great people and then giving them the space to excel. This includes providing unlimited PTO so team members can take time off as needed and allowing them to choose how they work. This approach supports work-life balance and helps prevent burnout.
we believe in hiring great people and then giving them the space to excel. This includes providing unlimited PTO so team members can take time off as needed and allowing them to choose how they work. This approach supports work-life balance and helps prevent burnout.
Tolga Tezel
Finally, internal transparency is key. We hold weekly team meetings to review KPIs and monthly retrospectives to assess our progress against goals. We also involve team members in key decision-making processes, especially when it comes to planning and execution. For instance, when setting timelines or release schedules, we consult with our engineering team, who are directly involved in the work. This collaborative approach helps foster a sense of ownership and can lead to faster execution.
Overall, creating an environment where team members feel valued, well-compensated, and involved in decision-making helps with retention and keeps the team motivated.
What’s next for Canopy Connect? What can we expect from you in the next 12 to 18 months?
We’ve recently launched our All-in-One Insurance Intake Platform, which allows companies to quickly configure and deploy their insurance intake processes. This has been a significant update and is still relatively new.
Looking ahead, our core vision at Canopy Connect remains focused on helping both consumers and businesses leverage their insurance data for greater value and convenience. Initially, we facilitated consumers sharing their insurance information with businesses. Now, we’re expanding our efforts to support insurance companies in managing their own data more effectively.
We’re developing a new product called Policy Stream, which integrates all the information across an insurance company’s book into a unified API and dashboard. This tool connects with our pre built integrations, enabling insurance businesses to automate various tasks from start to finish. Whether it’s handling missed payments, cancellations, renewals, or other servicing and retention tasks, our goal is to streamline these processes and help agencies manage their operations more efficiently.
Interview by Joanna England
