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Snapsheet, which creates branded claims apps for insurance companies, today announced a $10 million Series B. Unlike many executives in their position, Snapsheet’s leadership eschewed venture capitalist firms and angel investors for high net worth individuals who offer something money can’t buy: connections
“We raised this from a syndicate of private investors,” said Brad Weisberg, who mentioned he and his co-founder, CJ Przybyl, turned down an offer from institutional investors. “What we found was that, with insurance, it’s all about networking and who you know and having deep relationships...Knowing people in the industry makes all the difference in the world.”
Weisberg indicated that the unnamed individuals who make up this “syndicate” provided an “in” of sorts with people or entities Snapsheet would not be able to reach otherwise. Currently, Snapsheet provides apps and claims processing services to eight carriers, including AIG, Metlife and USAA. In the first quarter of 2014, they expect to add three to four more carriers and, building off these newly cemented relationships, even more later in the year.
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Snapsheet was born two years ago from the team that founded BodyShopBids, which let people submit photos of their damaged vehicles and receive estimates from local shops. Realizing how infrequently people get into car wrecks — once every seven to 10 years, according to Weisberg — the focus shifted to working with insurance companies to assess claims.
“We learned that insurance companies have millions and millions of people a year that are looking to get an estimate, and they don’t really have the technology we do,” Weisberg said. He and his team decided to replace typically time-consuming and frustrating process of submitting claims manually with branded iPhone and Android apps. When customers upload images and details through the app, Snapsheet’s trained estimators assess the damage and return with an estimate within three business hours through the app. Once the customer finds out how much the repairs will cost, they can even have the money extracted straight from their bank account, without ever using anything but their phone.
Considering receiving estimates typically takes seven to 10 business days, it is not hard to understand why insurance carriers and their customers are adopting Snapsheet. The improved user experience has not only helped Snapsheet’s clients retain more customers, it has helped build up the company’s business as well. This year, they will process 50,000 estimates, with hopes of surpassing 200,000 claims in 2014. As such, Weisberg says the company will need to grow from its current 50 employees to 150 by the end of next year.
With such a transaction nearly closing out 2013, Weisberg says his plans for 2014 are focused on gaining clients, offering superior customer service and building on recent successes. He said, “I think [the priority] really is executing flawlessly on the business that we have and scaling up.”
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