Insurtech start-up Covera, based in Montreal, has managed to raise $1 million as part of its seed financing round led by Ferst Capital Partners, with participation from fintech angel investors.
According to a release, the seed round – preceded by a $500 thousand pre-seed financing round in 2016 – brings the total capital raised by the start-up to $1.5 million. The new financing will be used by Covera to support growth and user acquisition initiatives, drive the company’s geographic expansion in Canada, and build its team to expedite product development.
Covera utilizes technology to help customers find the best insurance deals every year.
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“No-one should be allowing their insurance to automatically renew - there are almost always benefits to shopping around” said Covera CEO Scott Loong. “Covera provides everyday Canadians with a non-conflicted and technology-first approach to improving their mobility in the market - gone are the days where Canadians are trapped by the boring process of shopping. Covera handles it for you, year-after-year, and gets you the best value in the market when your home or auto insurance expires.”
Covera is expecting subsequent closings to bring its total capital to $2 million by November 2017.
“There is an enormous opportunity for disruption in P&C insurance distribution and Covera is innovating by effectively leveraging data and AI to gain insights,” said Ferst Capital Partners managing partner Dominique Ferst. “Covera is using a unique go-to-market strategy by targeting the insurance renewals space. Ferst Capital Partners is proud to be leading this investment in an industry that has gained global traction whereby Canada has lagged behind.”
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