honcho surges past crowdfunding target

honcho, which operates a reverse auction marketplace for financial services, has surpassed its ?700,000 crowdfunding target.

The startup has raised up to ?750,000 in a crowdfund it is hosting on the Crowdcube platform. There are still six days left on the offering and the startup has not indicated a hardcap.

So far, it has attracted 395 investors to contribute to the round.

honcho is raising the capital at a ?6.9m valuation and has offered 9.81% of its equity to investors.

The UK-based company raised ?750,000 in funding last year to support the launch of its services in the country. Its round was comprised of a ?322,500 investment from private equity firm Maven Equity Partners and investments from the European Regional Development Fund and Finance Durham Fund.

honcho aims to boost competition and pricing transparency through an auction where insurers bid against each other in real-time to win people business. Each insurer pays ?1 to enter an auction, which is cheaper than PCW commissions.

Last year, the company launched an auto insurance option to its services. The new service lets insurers bid against each other to offer consumers with an appealing car insurance offer.

The UK is leading Europe charge for InsurTech platforms, representing 40.2% of the 315 transactions in the sector since 2014. Germany is the second largest country for European InsurTech investment, followed by France, Italy and Sweden.

Copyright ? 2020 FinTech Global

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