Home insurance startup Hippo raises $350M

Company was valued at $1.5B after a $150M round in July

National /
Nov.November 24, 2020 04:30 PM
Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

Home insurance startup Hippo has raised $350 million from Japanese insurance giant Mitsui Sumitomo.

The deal comes just four months after the online insurance firm raised $150 million, valuing the company at $1.5 billion. The companies did not disclose a new valuation, but said the fresh capital would fuel Hippo’s growth in the U.S., where demand for all-digital real estate services has surged since the onset of the pandemic.

Mitsui Sumitomo, a subsidiary of MS&AD Insurance Group Holdings, was also an investor in the July funding round. The company has now raised a total of $709 million from investors including Dragoner, Fifth Wall Ventures and Lennar.

In addition to the new funding, Hippo said Mitsui Sumitomo will sign a reinsurance agreement, meaning it will take on some of the startup’s insurance risk.

Mitsui Sumitomo bought a convertible note (a form of equity and debt) that will turn into equity the next time Hippo raises money, CEO Assaf Wand told Reuters, which first reported the funding.

Wand declined to provide an update on Hippo’s previously stated goal of going public by 2021.

But in July, Wand told Bloomberg News the goal was to have Hippo on a “clear path to profitability” by 2021. He said Hippo was on track to generate $100 million of revenue in the next year.

As an online insurance agent, Hippo lets homeowners purchase a policy in five minutes or less. It relies on various companies to underwrite loans; in June, it bought Spinnaker Insurance Co., making it a carrier as well.

The company also gives customers free smart home devices, which it says can detect incidents in advance and potentially help avoid claims.

Hippo, which was founded in 2015, is currently available in 32 states, and aims to reach 95 percent of U.S. homeowners next year, according to a news release.

Over the past 12 months, insurance startups have rushed to go public, bolstered by low interest rates and a hot IPO market. In July, SoftBank-backed Lemonade saw its share price triple in its stock market debut. Rocket Companies, the parent of Quicken Loans and Rocket Mortgage, saw its stock jump 26 percent when it went public in August.






    Related Articles

    arrow_forward_ios
    From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    South Florida’s pandemic-fueled residential market poised for bull run in 2021
    Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)
    Kate Ford’s Palm Beach estate sells for $55M
    Kate Ford’s Palm Beach estate sells for $55M
    Oprah Winfrey and (inset) Lawrence Stroll over the unit (Getty)
    You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse
    You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse
    As resi brokers in South Florida report an uptick in sales and rentals largely fueled by homeowners fleeing dense markets like New York, office brokers say they’re starting to see a similar trend play out among tech firms. (iStock)
    More tech firms eye Miami as Covid carries on
    More tech firms eye Miami as Covid carries on
    Gables Town Colony apartment complex, Sue Ansel of Gables Residential
    Gables Residential scores $85M loan for Boca Raton apartment complex
    Gables Residential scores $85M loan for Boca Raton apartment complex
    Daniel de la Vega with the previous website and the redesigned version (Credit: iStock)
    One Sotheby’s rolls out new website during pandemic
    One Sotheby’s rolls out new website during pandemic
    Broadstone City Center with Alliance Residential’s Bruce Ward and Nuveen CEO Jose Minaya
    Nuveen pays $103M for West Palm luxury apartments
    Nuveen pays $103M for West Palm luxury apartments
    Edmund Ansin and the property (Credit: Google Maps)
    Billionaire TV family sells Miramar property to Florida Crystals
    Billionaire TV family sells Miramar property to Florida Crystals
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...