MOUNTAIN VIEW — Hippo, a company that is developing smart home insurance, has closed a $14 million Series A round. The funding was led by Horizons Ventures. It was joined in the round by RPM Ventures, Propel Venture Partners, GGV Capital and Pipeline Capital as well as number of high profile FinTech investors and entrepreneurs.
Hippo is taking a fresh approach to the home insurance market, which has seen little innovation in over half a century. As one of the few products and services that cannot be easily purchased online, Hippo is set to disrupt an outdated industry by providing home insurance that is fast and simple to purchase online, offers more transparent coverage that is suited to modern lifestyles and is available at lower prices by going direct to consumers and removing expensive commissioned agents.
“We took everything that’s wrong with the current state of home insurance—the confusing forms, the outdated policy terms, the agent as middleman—and fixed it,” says Assaf Wand, CEO of Hippo. “The home insurance industry hasn’t changed in decades and no longer reflects modern lifestyles. Today, many homeowners do not fully understand what their policies entail or what coverage they really need. Policies still cover old school items like pewter bowls, stock certificates and furs, but only provide $2,000 of coverage for home electronics. At Hippo, we make sure modern homeowners are fully covered through our online, transparent and affordable policies.”
Hippo will use the Series A funds for product development and marketing of its official launch in early 2017. The company has already received regulatory approval by the California Department of Insurance to begin selling in California and is currently in the middle of a closed beta program.