Honcho’s latest equity crowdfunding campaign on Crowdcube is now nearing £1 million in funding. The UK-based insurtech launched the initiative last month with a mission to raise a minimum of £700,000. The company is offering 9.21% in equity at a £6,899,999 pre-money valuation.
Honcho describes itself as a reverse-auction marketplace where insurers enter a competitive real-time bidding process in order to offer the best price to customers. It aimed to launch in Summer 2018 with nearly 20 insurance brands that will pay a £1 fee to bid rather than the average £50 commission charged by comparison sites.
“We have developed the first online reverse auction marketplace for financial services. A reverse auction is where you, the consumer, receive bids and become the focus of the auction. Companies will compete against each other to win your custom which is how we think it should be! It’s disruptive and innovative, and we’re going to start by launching into the car insurance market in 2018.”
Honcho also noted that it has signed up more than 10,000 consumers, which is notably growing monthly and 14 insurers to its platform.
Honcho raised £829,370 through its previous equity crowdfunding campaign on Crowdcube less than two years ago. The company revealed that since the closing of that funding round it has received our FCA authorization, raised £950k from Maven Capital and others. Funds from the latest Crowdcube round will be used to scale Honcho’s marketplace and range of insurance products to learner, van, and home. The campaign is now set to close at the end of January.
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