Auto insurance start-up Clearcover has raised $50 million in a Series C round of funding, led by OMERS Ventures.
This brings Clearcover’s total funding to more than $104 million since its 2016 founding, following a Series B round in January 2019 that raised $43 million.
As part of the funding arrangement, Michael Yang, managing partner at OMERS Ventures, will join Clearcover’s board.
Previous investors American Family Ventures, Cox Enterprises and IA Capital Group also participated in the most recent round.
Clearcover plans to use the funding to continue building the technology behind its cost efficiency and customer experiences.
In addition, the new capital will allow Clearcover to continue its expansion in existing markets and launch in new states throughout the U.S., while integrating additional distribution channels in the automotive and financial services space.
The team will double its current headcount across product, engineering and data science with local and remote options.
“The market is taking notice of how Clearcover is redesigning the model of running an insurance company in further service of customers,” said Kyle Nakatsuji, Co-Founder and CEO of Clearcover.
“OMERS Ventures brings a wealth of resources and experience to support scaling our business, making them the ideal partner as we take on the next stage of growth,” he continued. “This investment enables us to continue delivering better coverage – for up to 230 million licensed US drivers – for less money.”
Michael Yang also commented: “We are excited to support Clearcover’s mission to disrupt the future of auto insurance. Clearcover’s business strategy and technology foundation for sustaining a long-term competitive advantage, combined with its vision for the modern customer experience, is incredibly compelling.”
“We believe in Kyle Nakatsuji and the entire Clearcover team to revolutionize the insurance industry and deliver significant value for their customers,” Yang added.