UK-based InsurTech honcho has entered the final stage for its £2.25m capital raise and is looking to raise the remaining £300,000 via a crowdfunding campaign on Seedrs.
The InsurTech is no stranger to crowdfunding, having previously raised capital through CrowdCube, but this will be honcho’s first time on Seedrs. Its campaign will launch on Monday 13 July.
honcho first launched its 2019-2020 £2.25m capital drive in the summer of 2019. The InsurTech initially pulled in £750,000 from Maven Capital Partners.
In February 2020, honcho added a further £1.2m to the funding round. This investment was comprised of a new investments from Maven and Insurtech Gateway, as well as through a crowdfunding campaign on CrowdCube.
The company is now looking to raise the remaining £300,000 of its round through Seedrs.
honcho CEO Gavin Sewell said, “This will be the third time that we’ve offered an investment in honcho to the general public, and it continues to be a really important part of our investment mix.
“Whilst we are very well supported by our two institutional investors, crowd investors bring a very different kind of dynamic to our business and one that we’re really keen on. Our crowd investors get to have early access to our products and help shape their design whilst at the same time having the opportunity to invest in an early stage business that, in most startups, would not be possible.â€
honcho, which is available for iPhone and Android devices, gives consumers a simple way to compare different insurance quotes, examining how closely they meet the user’s specific needs.
The InsurTech stylises itself as the “reverse auction marketplace†where insurers bid against each other in real-time to win people’s business. Each insurer pays £1 to enter an auction, which is cheaper than PCW commissions.
honcho commercial director Frank Speight, said, “For years we’ve been conditioned by the big price comparison sites into believing that “cheap†is the only thing to look for in insurance, yet ironically insurance is one of the most critical purchasing decisions to get right in terms of the impact it could have on you if you choose badly. Cheap is only any good if it gives you the level of cover that you need such that, if the worst happens and you need to claim, you’ve actually got the backup that matches your needs.
If you were buying a car, a TV or even some clothes, the chances are you’d have a set of things that you wanted in your purchase and you’d then try to find something that matched your needs, at the best possible price. This is what honcho brings to insurance.â€
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