Layoffs at Thimble
Based on information obtained by Coverager, business insurance startup Thimble has laid off 33% of its workforce – about 20 employees.
Management held an all-hands meeting where it informed employees about upcoming layoffs. According to one source, the reason for the layoffs was the startup’s struggles around closing a new round of funding, as existing investors were not willing to offer continued support.
Thimble’s last round of funding was a $22 million Series A, which took place in October 2019.
We reached out to the company for a comment and received the following statement:
“Thimble’s vision is to become an iconic, independent, profitable insurance company. Today, we accelerated our transition to profitability and independence by cutting our burn through leaner expenses and, unfortunately, organizational changes including layoffs. All affected Thimblers are being offered severance and we will support them in any way possible to secure new employment. In the meantime, we recognize and celebrate their contribution to helping build an insurance product customers are calling “unbelievably easy and fast.”
In regards to existing investors unwilling to offer support, Thimble founder and CEO Jay Bregman says that this statement is not true/misleading, while adding that existing investors have been extremely supportive and have committed additional funding, but at a lower burn rate.
Regarding the latest funding round, Bregman says that Thimble’s last round of funding was a $15M A-1 round which took place in February 2021. Our information is based on Crunchbase data and there was no public announcement of the $15M A-1 round.