Kin, the digital, direct-to-consumer home insurance company, announced the closing of $15 million in financing from new investor Activate Capital, a growth-stage VC firm focused on the sustainable, resilient transformation of the global economy.
Raising at an increased valuation, greater than $1 billion, is an achievement that’s becoming rare as other technology companies reportedly “continue to have trouble securing capital.”
Kin has claimed that it maintained systematic, capital-efficient growth, “increasing revenue by more than 50% year-over-year and maintaining positive net income in 2023.”
With this incremental capital, Kin can “accelerate its growth investments, including multiple new markets and products, which will widen the gap with legacy insurers that aren’t able to quickly respond to changes in climate, technology, and consumer preferences.”
Sean Harper, CEO of Kin, said:
“Investors appreciate our focus on the fundamentals – maintaining positive unit economics, using technology for accurate pricing and better underwriting, and eliminating unnecessary steps in the insurance journey. We ended the year with approximately $85 million in cash, which doesn’t include the cash in the reciprocal exchanges we manage. But in this environment, having a strong balance sheet is particularly beneficial, which is why we’re excited to partner with Activate on the investment.”
Activate invests in companies building category-defining platforms “that address disruptive global forces like climate change.”
Sustainability and resiliency are “at the heart of Activate’s investment strategy, where its portfolio companies are accelerating decarbonization and strengthening shared systems of energy, production, transportation, trade, and infrastructure.”
Eric Meyer, principal at Activate, said:
“As millions of homeowners seek to protect themselves against growing risks from climate change, reliable and affordable insurance grows as a socioeconomic imperative. We believe that Kin’s unique approach to homeowners insurance unlocks new levels of agility in adapting to market challenges and providing necessary coverage in many underserved regions.”
Kin operates in eight states where it “serves approximately 115,000 policyholders, and its reciprocal exchanges have nearly $345 million of premium in force.”
As noted in the update, Kin claims that it is “the only pure-play, direct-to-consumer digital insurer focused on the growing homeowners insurance market.”
Kin makes homeowners insurance “more convenient and affordable by eliminating the need for external agents.”
Kin’s technology platform “delivers a seamless user experience, customized options for coverage, and fast, high-quality claims service.”
Behind the scenes, Kin utilizes thousands of data points “about each property to provide accurate pricing and produce better underwriting results.”
Kin is a fully licensed carrier that “offers coverage through its reciprocal exchanges which are owned by its customers.”