On-demand platform for specialized mobility insurance VOOM has today announced that it has raised $15 million in funding to help expand its usage-based insurance model to additional mobility verticals. Following the launch of its per-mile insurance product for motorcycles in August, it will be expanding it for light aircraft, leisure vehicles, and gig drivers. The funding round was co-led by JAL Ventures and UP.Partners, with the participation of F2 Venture Capital, Kaedan Capital, Arbor Ventures, Verizon Ventures, and ICON Continuity Fund and brings the company’s total funding to $22 million.
“The first wave of insurtech startups improved the way insurance companies engaged with their customers,” said Tomer Kashi, co-founder and CEO of VOOM. “VOOM, as an ‘insurtech 2.0’ pioneer, is fundamentally changing the risk model itself. Our expertise is in areas of mobility where the risk is high but the usage is irregular or seasonal. We apply advanced analytics to provide dynamically-priced usage-based insurance products that our customers love.”
VOOM identifies areas of mobility that are underserved and provides solutions that rely on new sources of data and customer usage. This helps the company offer fairer rates than traditional insurance companies whose models are built on other data such as home ownership, credit score, and zip code.
“The mobility industry is evolving extremely quickly, but traditional insurance providers do not,” said Ben Marcus, co-founder and managing partner at UP.Partners. “In order to serve the most innovative mobility segments, VOOM has established its own end-to-end insurance software stack which has now been proven with great success. We are excited to join VOOM on their journey as they expand their business to additional mobility verticals.”
Yair Elbaz, general partner at JAL Ventures added: “We have met numerous insurtech companies in the last 12 months, but the VOOM team stood out. They have a winning combination of flawless execution and a clear vision for how to disrupt the mobility insurance market. Insurance is a $6 trillion global industry with insurtech making up less than 1% of that. VOOM is churning out innovative insurance products and that will markedly expand the insurtech share of the insurance industry.”
VOOM is headquartered in Tel Aviv, Israel, but has an office in Palo Alto and licensed insurance brokers in all 50 U.S states. It was founded in 2016 by Kashi with Ori Blumenthal and Ronny Ahituv, who serve as CTO and former VP R&D.