Neat, a Paris-based insurtech startup, raises €50 million funding round with an innovative approach
In a surprising move in the current funding climate, Neat, a French insurtech startup, secures a substantial €50 million (approximately $55 million) funding round. However, there's a twist – a significant portion of this round comprises a debt facility, making it more of a €30 million equity round with an additional €20 million in debt. This unique funding structure sets Neat apart in the competitive startup landscape.
Neat specializes in providing insurance products to companies for resale to their customers. Their focus is on affinity insurance contracts tied to various services or products, such as smartphone protection, travel insurance, concert ticket insurance, and warranty extensions for household appliances. By offering embedded insurance products, Neat enables partner retailers to earn commissions on insurance sales without the complexities of the insurance industry.
Operating as a managing general agent, Neat collaborates with insurance and reinsurance companies to underwrite risks directly. The company's full-stack approach allows them to create diverse insurance products tailored to different demographics and needs. By managing compliance and actuarial functions in-house, Neat streamlines the product development process and ensures transparency in pricing.
With a diverse risk profile covering 10 verticals, Neat mitigates risk and maximizes technical synergies. Collaborating with 1,500 distribution partners, Neat has sold over 1 million insurance products, demonstrating the scalability and effectiveness of its business model. Leading the Series A funding round is Hedosophia, with support from Alma Mundi Ventures, ETFS, Athletico Ventures, and existing investors.
In conclusion, Neat's innovative approach to insurance product development and distribution showcases the potential for disruption in the insurtech sector. By aligning the interests of policyholders, distributors, and insurers, Neat offers a comprehensive solution that benefits all stakeholders. With a focus on diversification, transparency, and efficiency, Neat is poised for continued growth and success in the evolving insurance market.