Sydney-based insurance startup Upcover has raised $4.7m in a seed funding round to further its mission to simplify insurance for Australian small businesses.
Business News Australia revealed that the funding comprises $2.7m equity and $2m debt.
The round saw support from early-stage venture capital firms Antler Australia and Betterlabs, as well as QBE Insurance general manager Patricia Priest, Etika CFO Raf Uy, Bricks and Agent co-founder and CEO Rafael Niesten, and Global Life APAC ex-CEO Colin Morgan.
Upcover was founded by Anish Sinha and Skye Theodorou in 2019, with a vision to transform the small business insurance landscape in Australia by changing how the small businesses, startups and independent contractors working with enterprises and on-demand platforms protect themselves.
The platform empowers any online business, brand or marketplace to become distributors of insurance products.
Having recently launched four new insurance products, Upcover has reportedly experience significant growth, growing 20% month-on-month on insurance premiums and policies underwritten.
Upcover will use the capital on customer acquisition and product development for the technology platform.
Theodorou said, “The journey of building Upcover has been an incredible ride. With the platform live, and our customers loving the experience we offer, we know we are onto something unique.”
Small businesses represent a unique opportunity for insurers. In the US, Aon recently partnered with PayPal to launch an initiative to help millions of PayPal’s small business customers access insurance.
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