Vouch Insurance, a new insurance company focused on early stage tech start-ups, has announced its launch, with capacity for its policies to be provided by Munich Re.
Using an entirely digital platform, Vouch will offer proprietary insurance products and risk assessment tools designed specifically for high growth companies.
Vouch also revealed that it has raised $24.5 million in Series A funding, led by by Ribbit Capital and SVB Financial Group, the parent company of Silicon Valley Bank, with participation from Y Combinator, Index Ventures, and 500 Startups.
Currently, the Vouch is only authorised to sell to start-ups in Utah and Illinois, but the company expects to expand to California shortly, to 10 US states by the end of the year, and aims to be operating nationwide by 2020.
“As seen time and again over the past few years, startups face a range of risks similar to large established companies, yet the current insurance market doesn’t understand our unique needs,” said Sam Hodges, CEO and co-founder of Vouch.
“This leads to policies that don’t cover what they need to, cost too much, and take too long to get. Vouch is the kind of insurance company I wished existed when I founded my last company.”
Vouch was co-founded in 2018 by Hodges, who was previously the co-founder of FundingCircle U.S. and CEO of WorkingPoint Software.
The other co-founder is Travis Hedge, Vouch’s vice president of business development. He was previously an investor with Nationwide Insurance and SVB Capital, the venture capital subsidiary of SVB Financial Group.
The rest of the founding team includes technologists and risk experts from companies such as Silicon Valley Bank, NerdWallet, Zenefits, LevelMoney, Travelers Insurance, Lyft, and Google.
“Vouch has a great team and solution to address a problem that faces many of our startup clients: an insurance market that doesn’t understand them or serve them well,” said Greg Becker, CEO of Silicon Valley Bank. “We are excited to make this investment and partner and support the Vouch team as it delivers insurance products to startups in the U.S.”