Clearcover raises $200 million
Clearcover announced it has closed $200 million in Series D funding, led by Eldridge, with participation from existing investors American Family Ventures, Cox Enterprises, OMERS Ventures, as well as several other new investors. Clearcover has raised $329 million in total funding to date.
Founded in 2016, Clearcover is now available in Arizona, California, Georgia, Illinois, Indiana, Louisiana, Maryland, Missouri, Nebraska, Ohio, Oklahoma, Pennsylvania, Texas, Utah, and Wisconsin. In 2020, the company wrote ~$21M in premiums alongside a combined ratio of ~146%.
Speaking with several former employees, the company morale took a hit when Nakatsuji said in an all-hands meeting something along the lines of “we’re not a family, we’re a sports team, and if you don’t perform you’re out.” These employees also shared frequent pivots by leadership and issues with the company’s tech capabilities. When it comes to sales, the majority is driven by comparison sites and independent agents.
“The car insurance experience is becoming increasingly digital and customers want streamlined, customizable options when choosing a carrier. In an industry ripe for transformation, we see ourselves as innovators in digital car insurance experiences while providing our customers more value for less money. This new capital will allow us to continue our growth across the country, providing better insurance to more customers.” – Kyle Nakatsuji, cofounder and CEO of Clearcover.
“Clearcover’s technology-first platform offers customers a fast, affordable alternative to legacy auto insurance. As the industry continues to evolve from analogue to digital, Clearcover is well positioned to scale while delivering a competitive product and better experience to consumers across the US.” – Todd Boehly, Chairman and CEO of Eldridge.