US and Israel-based Insurtech Startup Honeycomb raises USD 15.4 million in Series A round

Honeycomb, a US and Israel-based online insurance platform designed for commercial real estate, raised USD 15.4 million in a Series A funding round led by Ibex Investors on 20 January 2022. With this round, the startup has raised USD 19 million to date.

Investors: Ibex Investors, an investment firm founded in 2011 and headquartered in Denver, Colorado, led the latest funding round. SiriusPoint Ltd., a global insurer and reinsurer, and the company’s own lead underwriting capacity provider, will also participate in this round as a new investor. In addition, existing investors, including Phoenix Insurance, Distributed Ventures (FKA NFP Ventures), IT-Farm, and Sure Ventures, also contributed to the round.

The Objectives behind the funding: The company plans to deploy the current proceeds to expand its operations in more states.

About Honeycomb

Founded in 2019 by Itai Ben-Zaken, Nimrod Sadot and Adam Cherubini, Honeycomb is a reinsurance-backed managing general agent providing simple, fair, and affordable multi-family property insurance through its end-to-end digital platform. Honeycomb’s unique product leverages advanced Artificial Intelligence and computer vision to completely reinvent real-estate insurance. The company began writing US policies in June of 2021 and currently operates in 4 states – Illinois, Arizona, Ohio, and Michigan. The startup offers tailored coverage at a competitive price point and at improved profit margins via its real-time rate/quote/bind offering and its data-driven “right-pricing” advantage. The company provides insurance advice about various insurance, including commercial property, commercial general liability, umbrella or excess insurance, and workers compensation.  

What the Founder has to say:

“Commercial lines insurance and specifically insurance for multi-family properties is ripe for disruption given the sheer complexity entailed in underwriting this class of risk, its manual processing legacy, and the absence of a leader in the market,” observed Honeycomb’s co-founder and CEO Itai Ben-Zaken. “At Honeycomb, we have succeeded in converting the institutional knowledge of our team of industry veterans into algorithms that parse deep, first-party, location-specific data to more accurately evaluate risk. As a result, we can perform more robust underwriting quicker and at a lower cost structure than previously possible.” 

What the Investor has to say:

“Honeycomb is poised to change the game of real estate insurance,” said Gal Gitter, partner at Ibex Investors. “Their platform uniquely leverages both first and third-party data to disaggregate risk in ways that are totally different from the rest of the industry. Honeycomb is growing at a rapid pace since its launch, and we believe they will become the dominant platform in this market.”

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