One year after launching, car insurance comparison service raises $750k from San Francisco-based venture firm to accelerate growth and expand team.
San Francisco, CA - June 3, 2011
CoverHound announced today that they had secured their first round of institutional capital, raising a $750,000 seed round from Blumberg Capital, an early-stage venture firm founded by David Blumberg.
“It’s been one year since we started CoverHound and you really can’t ask for a better birthday present,” said Basil Enan, founder & CEO of the car insurance comparison service. “The Blumberg team offers a lot more than just capital; they’ve been helping build great companies since 1991 and their experience will be invaluable as we scale.”
The funds will primarily be used to accelerate growth in CoverHound’s engineering, marketing and sales teams and to continue building consumer awareness for CoverHound’s innovative research and comparison shopping tools.
“CoverHound has a great team and lots of traction around a product that has already helped thousands of people find insurance, but we’re particularly excited about what’s next,” said David Blumberg, alluding to CoverHound’s new full-service comparison shopping platform.
The service--still in private beta--will allow consumers to get objective, accurate and actionable comparison rates from top providers without picking up the phone.
The Internet has been a disruptive force in travel, home buying and personal finance. But car and home insurance shopping have been slower to shift online. “Buying car insurance is not like buying a TV,” said Enan. “You’re buying financial protection and peace of mind and for many people, it’s a purchase that they prefer to make with the help of a trusted advisor. CoverHound’s mission is not to replace those advisors but rather to provide the trusted place where people start the process.”
Car insurance is one of life’s major expenses, but customers frequently end up with a policy that doesn’t fit their needs. ”People don’t often think about car insurance, but when they do, we want them to think about CoverHound first,” Enan said.
CoverHound is a San Francisco-based technology company that empowers consumers to make better insurance decisions. Founded by a team of insurance industry veterans, CoverHound allows online consumers to calculate their personal insurance needs, learn more about top insurance companies, and easily buy the right policy at the right price.
About Blumberg Capital
Blumberg Capital is a classic, early-stage venture capital firm focused on investing in innovative and disruptive Digital and Social Media, SaaS/Technology Enabled Services, Mobile Technology and Internet companies. They strive to collaborate with exceptionally talented entrepreneurs with disruptive ideas and scalable business models to drive innovation and economic growth.