EverQuote announces $15 million private placement investment by chairman and co-founder
EverQuote has signed an agreement for a $15 million private placement investment by Recognition Capital, LLC, an entity which is owned and controlled by David Blundin, chairman of the Board of Directors and co-founder of EverQuote and a longtime investor in the company.
Under the terms of the purchase agreement, Recognition Capital, LLC has agreed to purchase 1,004,016 shares of EverQuote’s Class A Common Stock at a price of $14.94 per share, which is equal to the closing price of the Class A Common Stock on the Nasdaq Global Market on February 22, 2022, for an aggregate purchase price of $15.0 million.
EverQuote intends to use the net proceeds of the private placement for working capital and general corporate purposes.
The company ended 2021 with close to $35 million in cash and cash equivalents, down from ~$43 million in 2020.
“We are pleased that our Chairman and Co-Founder has chosen to invest in our business, reiterating confidence in our company’s market opportunity, long-term growth strategy and management team. This investment will help support our growth as we build towards our long-term vision of becoming the largest online source of insurance policies by using data and technology to make insurance simpler, more affordable, and personalized.” – Jayme Mendal, EverQuote’s CEO.