Branch raises $147 million
Branch has raised $147 million in Series C funding led by Weatherford Capital. Additional investors participating in the round include Acrew, AmFam Ventures, Anthemis, Gaingels, Greycroft, HSCM Ventures, Narya, SignalFire, and Tower IV. The raise brings Branch’s valuation to $1.05 billion.
Launched in 2019, Branch, which manages a reciprocal exchange, is available in 28 states and sells direct, through agents, and partners. In Q1 2022, Branch had ~$19.7 million in direct premiums written, with ~$9.2 million coming from its homeowners insurance product. Loss ratio for the quarter was nearly 160% and combined ratio stood at 261%.
“Consumers are frustrated by escalating insurance costs resulting from antiquated business models and complex processes. We believe that by reintroducing the power of community through data and technology, we can lower the cost of insurance while restoring it to its original intent: a force for communal good.” – Steve Lekas, Branch co-founder and CEO.
“For too long, the insurance industry has been plagued by an overly expensive approach to customer acquisition, driving up the price of insurance. Branch’s model is helping to ensure insurance is accessible for all. We are excited about this partnership and look forward to seeing Branch quickly and efficiently roll out nationwide affordable, high-quality insurance that all Americans deserve.” – David Seider, principal at Weatherford Capital.
Bottom Line: A 130% increase in site traffic and a 190% increase in employee count over the year.