Honeycomb, a leading digital insurer, has raised $36m in a Series B funding round in a bid to expand its insurance offerings.
The tranche will enable Honeycomb to enhance the end-user experience, drive profitability for its broker partners, deepen its technological advantage with proprietary AI models and leverage unique first-party data to expand into new insurance markets.
The round was led by Zeev Ventures, with the participation of new investors Arkin Holdings and Launchbay Capital. Existing investors Ibex Investors, Phoenix Insurance, and IT-Farm also contributed to the round.
Honeycomb specialises in providing innovative digital insurance solutions, particularly in the landlord insurance sector.
With its proprietary AI-driven technology, Honeycomb offers granular risk management and underwriting at the individual building level. This approach allows the company to provide consistent coverage at competitive prices for well-maintained properties.
Itai Ben-Zakan, co-founder and CEO of Honeycomb, stated, “The new funding will be used to further improve the end-user experience, driving enhanced profitability to our broker partners, and broadening the type and size of policies offered. We plan to deepen our technological advantage with proprietary AI models leveraging unique first-party data and expand into new insurance markets, turning Honeycomb into a one-stop shop for everything related to commercial real-estate insurance in the U.S.”
Honeycomb currently operates in sixteen of the largest states in the U.S., covering approximately 60% of the market.
The company insures over $21bn worth of real estate assets and aims to triple that number in the next 12 months. To support its growth ambitions, Honeycomb plans to double its staff from 90 employees to 180 within the next 18 months.
Oren Zeev, the Founding Partner at Zeev Ventures, added, “Honeycomb is an example of an InsurTech company that solves a major problem in a huge market, thus allowing it to increase ARR at a fast pace and progress to operational profitability in a short time. I am happy with this opportunity to lead the current round, as the company’s unique technological advantage positions it well to become the market leader in their space.”
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