Palo Alto-based insurtech unicorn Hippo closed yet another mega round of funding amid a big year of growth and funding for the company. With the money used to roll the insurtech out to new states, Hippo is on course to reach its goal of accessing 95% of U.S. homeowners in the next year.
The $350 million funding round was led by Mitsui Sumitomo Insurance Company, a subsidiary of Japan’s MS&AD Insurance Group Holdings. In a report by Reuters, it was shared that Mitsui also bought a convertible note in Hippo that will become an equity stake at the next round of funding according to Hippo’s CEO Assaf Wand. The funds come hot off the heels of a $150 million Series E round only four months ago that brought Hippo’s then valuation to $1.5 billion. Speaking on the funding, Wand shared that “the opportunities that stand before us are so vast and so big we wanted to double down.”
Founded in January 2015 by Israeli born Assaf Wand, Hippo has grown quickly to change the face of insurance and currently offers insurance products to over 70% of homeowners in the U.S. With the ability to get a quote within 60 seconds, access to home maintenance services is Wand’s goal. The company’s tech includes thermal and satellite imagery that helps users track changes to their properties. Outside of tech, policyholders are also given smart home device kits that detect issues such as water and fire damage. Service and customer experience is a big focus for Hippo, helping it obtain its large policy-holder base.
In the second quarter of this year alone, Hippo’s sales increased by 60% year-over-year, undeterred by the economic downturn. Speaking on the involvement of Mitsui, Wand said in Tuesday's announcement that Mitsui "is one of the best when it comes to risk management and shares our desire to leverage data and analytics to create better outcomes for homeowners.” This paired with the company’s relentless growth and steady investment will see a period of further growth while the company also funnels its new funds toward providing additional capital to its investment and reinvestment companies.
This investment is a big boost of confidence for Hippo during a year where venture capital has somewhat faltered, lagging behind with only $2.6 billion raised through the first seven months of the year when 2019 saw a total of $7.3 billion invested in the sector. When asked about a potential IPO, Wand indicated that it may happen for Hippo when and if the right time presents itself.