Hippo raises $150 million
Homeowners insurance startup Hippo is announcing a $150 million in Series E funding, valuing the business at $1.5 billion post-financing. Investors participating in the round include FinTLV, Ribbit Capital, Dragoneer, Innovius Capital, BOND, Comcast Ventures, Felicis Ventures, Fifth Wall, Horizons Ventures, ICONIQ Capital, Lennar Corporation, Pipeline Capital, Propel Venture Partners, RPM Ventures, Standard Industries, and Zeev Ventures. The round also includes investment from large international hedge funds and family offices.
In the past 12 months, the company has grown its total written premiums to $270 million, growing at 140% YoY, and during the pandemic “business has remained strong” with a 60% increase in sales YoY in Q2 2020. The funding will be used to accelerate the company’s expansion, including to reach 95% of the US homeowner population in the next 12 months, make key hiring additions, invest in its successful technology operations and support the company’s proposed acquisition of a national insurance carrier.
Hippo began selling its policies to homeowners in 2017, which initially rolled out in California and is now available to more than 70% of the US homeowners population across 29 states. Hippo expanded its product portfolio with products for landlords, available in nearly 15 states, and a product for new construction, which is available in 12 states and counting. For protection inside the home, the Hippo smart home program, which offers eligible customers complimentary smart home devices at sign-up, has delivered more than 400,000 devices to date and helps alert homeowners to potential issues, like water leaks.
The company has committed to an aggressive hiring plan for its Palo Alto, California headquarters and its offices in Austin and Dallas, Texas. Hippo expects to increase its employee count by 100 people this year and will be expanding its Austin, Texas presence with a new Hippo ATX campus. Construction is underway and will hold up to 310 Hippo employees when it opens next year.
“We set out to change the relationship between homeowners and home insurance by offering more value and services in each interaction with our customers. We’ve seen tremendous growth over the last three years since launch, by leveraging technology wisely and reimagining the customer experience. We’re developing a long-term relationship with our customers, in part by supporting our insurance customers with home maintenance and smart home devices – all of which help solve small problems before they become big headaches.” – Assaf Wand, co-founder and CEO of Hippo.
“We’ve watched Hippo transform the home insurance experience, from its proprietary underwriting technology to its delightfully refreshing customer experience, a rarity in the industry. The value Hippo provides for consumers and the strides it has made towards the larger progression of the P&C insurance sector makes it the most compelling technology insurance company of its time.” – Gil Arazi, founder and managing partner, FinTLV.