Hedvig pays $ 45 million to expand millennial-focused insurance service to Europe – TechCrunch

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Millennials are emerging as a key demographic in the insurance market, and today a Swedish startup building a business that specifically meets their needs and priorities is announcing a fundraiser to fuel its growth. Hedvig, a neo-insurer that provides property, travel, contents and accident insurance tailored to the lifestyles of young adults – it also has a “clumsiness” policy and part of the profits are donated to charity – raised 45 million dollars in a Series B Fundraising Round.

Anthemis – a firm specializing in fintech and insurance investments – led the round, with the participation of previous backers Cherry Ventures, Obvious Ventures and CommerzVentures, as well as new Swedish backers Novax, Nineyards Equity, Jonas Kamprad and Mathias Kamprad. The valuation is withheld, bringing the total amount of funding to Hegvig to $ 68 million.

The Stockholm-based company also has a presence in Norway and Denmark and will use part of the funding to launch into its fourth country (not yet announced), outside of Scandinavia. The funds will also be used to continue to develop the Hedvig team and product.

The startup now has some 70,000 customers, the majority of whom are under 30, so the plan will be to continue creating more products for them. In March of this year, Hedvig was licensed as an EU-wide insurance company to prepare for this geographic and product growth.

“One of the reasons we switched to a full-cell carrier was to allow us to serve our members throughout their lives,” said CEO and co-founder Lucas Carlsen. “This means that we will certainly expand our offering in the future. “

To give a bit of context on its growth so far, when we covered the August 2019 increase in Hedvig led by Obvious Ventures, it had 15,000 clients, which means the startup’s client base has grown by almost 370% in the past two years. And Hedvig, like its target demographic, appears to thrive on virality: around 40% of its monthly growth comes from word of mouth.

Carlsen and his two co-founders Fredrik Fors and John Ardelius are all younger consumers themselves and built the platform initially around the concept of “beautiful” insurance, products that are easier and cheaper to buy, faster. to use and generally more suited to what millennials want. Its first products concerned the insurance of leased or owned properties; these days, to speak to the larger reminder, the homepage features a young man on a street in a european city doing an extended wheelie on his bike.

Insurance has undergone a big change in recent years thanks to technology, the evolution of smartphone usage and changing consumer expectations. Taking a page out of the fintech world and using API networks to deliver a compelling mix of services so that we can focus more directly on customer relations and a better user experience, there are now a number of service providers out there. ‘insurance in other markets such as Marshmallow in the UK or Lemonade outside the United States, building mobile first and easier to use experiences for their customers, or those like YuLife and Ethos using technology to revolutionize the way insurance is presented to potential buyers. But Carlsen maintains that there is no one in Europe who meets the needs of this freewheeling cyclist.

“Hedvig is a premium proposition for a group of very demanding consumers who expect exceptional service and lightning-fast complaint handling, ”said Carlsen. “We cover not only your home, but also your lifestyle with our ‘clumsiness insurance’ which covers all your belongings with one policy and even reimburses you for damages caused by your own clumsiness – a type of lifestyle insurance. that does not exist. in much of Europe today.

Many would assume that young adults would be the last to think, let alone buy, insurance. They often have less money for discretionary purchases, they may not own properties, and the assumption is that young people simply feel more invincible. In fact, it seems like the opposite could be the case if you present the product more specifically to the lifestyles of these young users and their values ​​as consumers.

“[Our] the insurance experience has made us a cult brand in just a few short years, ”said Carlsen, adding that approximately 40% of our growth is organic or through word of mouth. “We are now eager to present our proposal in markets where insurance is an even more painful experience than in the Nordic countries. In addition to his customer service and insurance offerings, Hedvig also worked from a good social angle. Its business model is based on a 25% reduction in the premium paid by a customer. Hedvig said the rest goes into “a pool of common claims for every time a Hedvig member needs help. All that’s left of this and the end of the year – if there is something left in the pool of common complaints) at the end of the year – is then donated to charity.

Over time, it seems likely that Hedvig will seek to expand into other demographic groups. “It’s no surprise that it’s the young on-demand generation who appreciate our dedication to service and lightning-fast complaint handling, ”he continued. “Having said that, we can clearly see how others want to join home insurance being our fastest growing segment.”

Ruth Foxe Blader, partner at Anthemis, and Matthew Jones, chief executive of the firm, co-led this investment. It should be noted that Blader, while at AllianzX, also led an investment in Lemonade. Jones, meanwhile, holds a seat on the board for this round.

“The Hedvig team has a truly unique mix of talents and skills in technology, design and insurance. The combination of their creativity and customer empathy gives them an edge that will be hard for others to follow. Insurance is exciting again! he said in a statement.


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