Glow, a digital insurance agency for small businesses, has raised $22.5m in Series A funding to offer more cost-effective and up-to-date policies to businesses.
The round was led by Cota Capital. AV8 Ventures, Markd, Startup Venture Capital, Maiden Re, and others also participated in the round.
Based in San Francisco, Glow strives to ensure small businesses have the right coverage for all their insurance needs at lower cost, not just when they purchase, but every year.
Glow said the financing will fund innovation in its digital insurance platform, and to expand into more states across the nation, serving small businesses across more vertical industries.
According to the digital insurer, traditional insurance has moved up-market, leaving small businesses behind.
These agents, the company said, often have a “blunt-instrument approach” to insurance, quoting policies that may not be the best fit for the company based on very few details about the business and its employees. This “one size fits all” approach can lead to overpaying.
Instead, Glow uses technology to look more deeply at data like job codes that can more accurately reflect the risk of a business. This is what allows the company to offer a policy that results in a more cost-effective option than local agents typically provide.
In addition, traditional agents often “sell-and-forget,” locking customers into renewals and walking away without re-examining whether their business, number of employees, or employee roles have changed.
Glow said its platform ensures that a company’s coverage is always up to date, at the lowest possible cost now and a year from now.
Samad Wahedi, CEO and founder of Glow, said, “Our goal is to take care of all small business insurance needs, because insurance provides the peace of mind to pursue your dreams. If you’re a small bakery, you want to know that your employees and your assets are safe but your focus is baking.
“At the same time, insurance comes out of your margins. Overpaying can mean a lot of cupcakes. We use data and cutting-edge technology to make sure you’re always protected with the right coverage so you can focus on building your business.”
COVU, an AI-enabled digital platform for insurance agencies, recently raised $10m in seed funding to launch its product.
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