Following the closing of its equity crowdfunding campaign on Crowdcube, which raised £893,620 in total funding, UK insurtech Honcho announced it raised an additional £1.2 million through its recent investment round. The company reported that between 2018 and 2019 honcho raised £1.8m from a combination of crowd investors on Crowdcube, angel investors and investment house Maven Capital Partners, who manage both Finance Durham and NEDCF.
As previously reported, Honcho is described as a reverse-auction marketplace where insurers enter a competitive real-time bidding process in order to offer the best price to customers. The company 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. Honcho has signed up more than 10,000 consumers, which is notably growing monthly and 14 insurers to its platform.
“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.”
Speaking about the investment, Honcho CEO, Gavin Sewell, stated he and his team are “delighted” to have achieved the investment with the continued support of Maven and the crowd.
“We’re also thrilled to welcome Insurtech Gateway to the honcho family. As specialists in our sector they will bring an immense amount of support to honcho as we enter our next phase of growth.”
The investment(s) has allowed Honcho to launch its car insurance marketplace last fall, and to start work on preparing for expansion into new insurance markets in 2020.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!