The US-Israeli digital insurance startup Honeycomb revealed today that it has raised $36 million in a Series B fundraising round led by Zeev Ventures, including participation from new investors Arkin Holdings and Launchbay Capital. The financing included participation from current investors IT-Farm, Phoenix Insurance, and Ibex Investors. This raises the company’s total fundraising to $55 million.
CEO Itai Ben Zakan and CTO Nimrod Sadot founded Honeycomb. The firm, which now represents 60% of the US market, started selling real estate insurance in June 2021 and is active in 16 states. Insuring property valued at $21 billion, Honeycomb has already issued policies and plans to increase that amount in the upcoming year.
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In a US industry valued at an estimated $34 billion yearly, Honeycomb provides landlord insurance. Over the next 18 months, the company plans to increase its workforce from 90 to 180 employees, with the majority of the new personnel working out of its Herzliya development centre.
Granular risk management, underwriting “at the individual building level,” and consistent coverage at a lower cost for well-maintained properties are made possible by Honeycomb’s exclusive AI-driven technology.
By utilising special proprietary underwriting technologies, Honeycomb simplifies the customer and broker experience and provides insurance coverage that can be tailored to meet the ever-changing demands of its clients. Honeycomb’s technological edge eliminates the requirement for “blanket limitations” or other similar categorical constraints on the age of the properties it insures.
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The business offers its policies both directly through its platform and through an expanding network of insurance brokers. These brokers are able to “bulk-quote” an infinite number of submissions in real time, which speeds up a process that used to take weeks to finish. This results in increased profitability for the brokers and significant value for the clients.
Ben-Zakan said, “The new funding will be used to further improve the end-user experience, driving enhanced profitability to our broker partners, and broadening the type and size of policies offered. We plan to deepen our technological advantage with proprietary AI models leveraging unique first-party data and expand into new insurance markets, turning Honeycomb into a one-stop shop for everything related to commercial real-estate insurance in the U.S.”
Zeev Ventures founding partner Oren Zeev added, “Honeycomb is an example of an insurtech company that solves a major problem in a huge market, thus allowing it to increase ARR at a fast pace and progress to operational profitability in a short time.”
About Honeycomb
The purpose of Honeycomb was to upend the real estate insurance market. They provide flawlessly tailored policies at unbeatable prices to apartment buildings, condominium associations, and single-family rental homes through the use of artificial intelligence and computer vision.
