One Chicago-based online insurance provider to small businesses just scored a round of financing that’s anything but small.
Insureon just announced a $31 million round of funding, led by fintech VC fund Oak HC/FT. Existing investor Accretive, which led the company’s previous rounds of funding, also returned to participate.
"We are excited to leverage Oak HC/FT’s significant resources and expertise as we pursue this massive and underpenetrated market opportunity,” said Insureon CEO Ted Devine (pictured right) in a company statement. “The Oak HC/FT team has a peerless track record of backing leaders in FinTech, and accessing their strong network and industry insights will become an important advantage for our organization going forward.”
The company said the capital will be used to fuel its tech development and cultivate Insureon’s sales and marketing efforts — particularly to small businesses.
Insureon said it is the answer to an outdated model of insurance sales where agents and brokers seek out SMB directly but often ignore — accidentally or otherwise — many newly-minted entrepreneurial endeavors and businesses run from the home.
Launched in 2011, Insureon said it’s become one of the nation’s fastest growing private companies, with a three-year growth of over 1,700 percent.
The company has already helped insure more than 175,000 small businesses.
