Canada-based InsurTech platform Covera Technologies has received $1m in a seed funding round, led by Ferst Capital Partners.
Covera is an insurance platform which shops for new home and auto policies each year for users, rather than allowing auto-renewals. The solution is targeting the 80 per cent of Canadians that let insurance policies to auto=renew rather than shopping around for better and cheaper products.
A user signs up to Covera, and once their insurance expires the platform automatically uses its data and algorithms to find alternatives.
The new equity line will help the company to support growth and user acquisition initiatives, drive expansion across Canada and build on its team to boost product growth.
Ferst Capital Partners managing partner Dominique Ferst said, “There is an enormous opportunity for disruption in P&C insurance distribution and Covera is innovating by effectively leveraging data and AI to gain insights. Covera is using a unique go-to-market strategy by targeting the insurance renewals space. Ferst Capital Partners is proud to be leading this investment in an industry that has gained global traction whereby Canada has lagged behind.”
This new wave of capital brings the total raised to around $1.5m, with Covera securing a $500,000 pre-seed round last year from Ferst Capital Partners. The company is expecting to close another round of funding soon, which will bring total funding efforts to $2m.
Over the past few months several Canada-based companies have received funding including Payment Rails which secured $1.1m, Koho nabbed $8m and CoPower netted $2m.
The Canada FinTech sector has seen a significant decline in funding this year, following a three-year rise. The first half of the year saw only $120m deployed across 20 deals, which is just over a fifth of 2016 total level of $568m.
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