Vouch Insurance, a platform backed by Munich Re that offers business insurance for start-ups, has secured $45 million of funding in a Series B investment round, led by Y Combinator Continuity.
At the same time, Vouch has announced its launch in California, following its initial authorisation in Utah and Illinois in September 2019.
The firm expects to be operating in 10 US states by the end of the year, and nationwide by the end of 2020.
With the new investment, Vouch has raised $70 million in financing to date from Ribbit Capital, SVB Financial Group, Y Combinator, Index Ventures, and 500 Startups.
Vouch’s platform provides coverage ranging from Business Property and General Liability and Employment Practice Liability to Cyber Coverage, with policies backed by Munich Re capacity.
The firms aims to help start-up founders scale their ventures by mitigating the risks associated with growth.
As a successful start-up incubator itself, Y Combinator believes the partnership between Vouch and its venture fund, Continuity, will be a strategic match.
“Y Combinator and Vouch share a common goal – giving founders the support they need to build successful, innovative companies,” said Anu Hariharan, Partner at Y Combinator Continuity.
“Vouch is built specifically for startups, so founders have the peace of mind that their business is covered,” Hariharan explained. “This platform is fundamental to the startup community, as it enables founders to focus on growing their companies — which is why we were bullish on leading the Series B.”
Sam Hodges, CEO and co-founder of Vouch and former co-founder of Funding Circle U.S., also commented: “Vouch helps founders manage the risks associated with starting up a new company, so they can focus on creating and growing businesses that change the world. We believe that’s a purpose worth pursuing.”
“As an entrepreneur, I’ve spent most of my career building companies at the intersection of technology and financial services,” Hodges continued.
“I know first-hand that along the journey of building and growing a business, teams will face numerous high-stakes challenges. Vouch is here to support entrepreneurs and mitigate those challenges from the beginning, leaving more room for growth.”
