Expat insurtech Cover Genius pockets $120 million Series E

- May 16, 2024 2 MIN READ
Angus McDonald
Cover Genius co-founder and CEO Angus McDonald
Former Sydney insurtech unicorn Cover Genius has raised its third 9-figure round, this time banking US$80 million (A$120m) in a Series E.

The fresh capital follows a $112 million (US$70m) Series D in late 2022 and $100 million in a series C in October 2021.

The round was led by California VC Spark Capital, which backed Slack, eToro, Grammarly and Discord, with support from existing investors, including Dawn Capital, King River Capital and G Squared.

The fresh capital will be used to speed up the company’s growth ambitions and improving its digital insurance distribution solutions, deploying Artificial Intelligence (AI) claims handling and expanding insurance offerings on the platform.

Cover Genius was founded in 2014 by Angus McDonald, a former Yahoo exec, and Chris Bayley, a former Google BDM, initially selling travel insurance before expanding into other coverage. It hit unicorn status in 2021 and is now headquartered in New York, with 30 million customers globally.

Its global distribution platform, XCover, is used in 60 countries, offering personalised protection in any language and currency.

McDonald, the CEO, said the business had 107% year-on-year growth in 2023.

“The display of trust from our investors highlights the resilience of our embedded business model and potential for growth, particularly as we strategically focus on key markets like travel, retail, ticketing, and logistics,” he said.

“Our collaborations with well-known brands, including Uber, Ryanair, and eBay, demonstrate our unique ability to create customer-centric protection solutions backed by technology, policy innovation, and industry expertise.”

Spark Capital general partner James Kuklinski said the technology platform, global presence and focus on digital claims caught their attention “years ago”.

“By tackling common insurance obstacles such as limited market coverage, lengthy claims processes, and a lack of product diversity, the company has evolved into a category leader,” he said.

“We couldn’t be more excited to partner with the company as they continue driving more value to partners and a best-in-class consumer experience.”
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