Berlin-based SureIn, an InsurTech startup, announced on Tuesday, August 15, that it has raised €4M in a Seed round of funding led by Pact VC.
The company aims to deliver comprehensive insurance solutions for small and medium-sized businesses.
SureIn says the funds will be used to expand its technical teams to enhance the company’s platform and improve product automation throughout its lifecycle.
The funds will also be used to expand insurance offerings in critical areas like healthcare and pension in existing and new verticals such as professional services and startups.
The investors
Besides Pact VC, German VC fund xDeck and other well-known business figures such as Warrick Shanly, individual General Partner (GP) and creator of Koro Capital, and Robin Haak, individual GP and founder of Robin Capital, participated in the round.
Vincenz Klemm, the former founder of Gabi Insurance, also took part in the funding round.
SureIn’s previous investors include Arc, Sequoia Capital’s pre-seed and seed stage catalyst, and Atlantic Labs.
Problems in the SMB Insurance
The European SMB insurance market, consisting of 24M businesses, has faced a lack of innovation. SureIn says that a lack of focus on user needs limits the insurance options available to these companies.
This issue happened due to conventional brokers’ and managing general agents’ (MGAs) uniform approach to relying on outdated products and distribution methods. It leads to SMBs being overlooked by insurance providers.
The main challenge is SMB distinctiveness, including the industries they are involved in, their ways of conducting business, and the changing levels of risk they encounter.
This intricacy has created a difficult situation when managing their insurance portfolios. It causes businesses to handle multiple insurance providers and systems.
This complexity often results in inadequate coverage or even neglect to update risk-related information properly. SMBs are at risk of receiving only partial compensation for claims or, worse, no payment.
This is where SureIn wants to make an impact.
Daniel Dierkes, CEO and Co-founder of SureIn, says that based on their market experience, SMB entrepreneurs lack a proper understanding of their risks and the necessary insurance coverage.
“When they come to us, we can see their former contracts all had gaps in their protection. Clearly, there is something wrong in this market,” says Dierkes.
“With this in mind, our overarching mission is to dispel the opaque nature plaguing the industry, empowering founders with insights into their risks and the insurance products best suited to shield against them – all the while securing top-tier products at competitive prices,” he adds.
Bridging the insurance gap
SureIn plans to change the SMBs issues by bridging its insurance gap, starting in Germany. The company has developed a unique platform encompassing an end-to-end insurance infrastructure for SMBs.
This innovation eliminates the need for SMBs to create systems, rely on third-party tools, or engage with traditional brokers. Since its launch in early 2022, SureIn has expanded its presence across various industries.
The platform generates over €1M in gross written premiums. The company claims it has successfully assisted businesses of diverse sizes and is close to serving its 1,000th SMB client.
SureIn specialises in hospitality, retail, beauty and wellness, services, craft, and construction. It employs a vertical-focused distribution and growth approach by thoroughly understanding each group’s different risks and needs.
Monik Pham, Founding Partner at Pact VC, says, “SMBs are the backbone of Europe as they make up 99 per cent of all businesses, accounting for more than half of the GDP across the market. Yet they are severely ignored by insurers. SureIn’s solution uniquely places them to change the insurance market by providing fair access to products, smoothing out market inefficiencies and empowering businesses to take control of the risks posed to their livelihoods.”
“We are proud to be backing this incredible team who have spent most of their professional lives building tools and products for SMBs in insurance and scale-ups that have reached IPO,” says Pham.
George Robson, Partner at Sequoia, says, “We partnered with SureIn early on because we strongly believe in the team’s mission. As businesses’ needs change, so does their risk situation, and so should their insurance coverage.”
“SureIn is constantly monitoring these changes to make sure clients’ coverages are up-to-date. We believe this is a game changer for the industry, and many entrepreneurs will benefit from this at such a crucial point in their businesses’ journeys,” adds Robson.
Read the orginal article: https://siliconcanals.com/news/startups/surein-bags-4m/
