Upsie Secures $5M Funding Round Led by True Ventures
Upsie, a consumer-friendly platform for purchasing product warranties, today announced it has raised a $5m fundraising round led by True Ventures. Upsie will use the funds to increase customer awareness, continue building its warranty product offerings and grow the business.
Imagine you’re shopping for a new smartphone. You find the one you want, and, at checkout, the salesperson tries to persuade you to buy a warranty protection plan. You either buy it (and perhaps never use it because you’ve lost the receipt). Or, you leave the store with your device unprotected because you’re confused about whether the warranty is actually worth the cost.
Salespeople at big-box stores have historically pushed warranties because they drive profit. These plans are marked up as much as 900 percent. Upsie is on a mission to fix the product warranty experience and save consumers money. Their warranty plans cost up to 70 percent less than competitor plans.
According to Pew Research Center, 77 percent of Americans own smartphones. However, 58 percent of Americans have less than $1,000 in savings, making replacing a device like the iPhone XS, impossible without a warranty. Upsie customers can easily purchase a warranty, make a claim, and even cancel warranties on one platform. All warranty information is stored in one place and is accessible at any time.
“We want consumers to know there’s a better way to insure their products, starting with electronic devices,” said Clarence Bethea, CEO and founder of Upsie. “We’re thrilled to work with Puneet (Agarwal) and the True Ventures team. They have a track record of giving early stage companies the resources and support they need to build world-class organizations. Having a Silicon Valley firm invest in Minnesota sends a clear message that there is talent in the Midwest and we are building something special here.”
“We love partnering with founders who have a fresh perspective on how to improve industries that haven’t experienced much technological or business model innovation in years if not decades,” said Puneet Agarwal, partner at True Ventures. “Upsie is an example of the exciting technology companies we see growing and flourishing in smaller cities across the U.S. We’re honored to fund this young company and support Clarence and his team as they rethink the product warranty space to the benefit of today’s consumers.”
This funding round includes participation from Techstars Ventures, Matchstick Ventures, Syndicate Fund, and M25, with continued support from past angel investor Marc Belton.