Fintech
CoverTree Raises $13 Million in Series A Funding
Cutting-edge insurtech company specializing in prefab home insurance solutions, CoverTree secures $13 million Series A funding round led by Portage, with participation from investors such as AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital and others. To date, CoverTree raised $23 million provide affordable insurance solutions to the growing prefabricated building economy. This Series A investment highlights the growing demand for modernized insurance products in the evolving real estate industry.
With more than 22 million Americans living in manufactured homes in the United States and 11% of new single-family homes in 2022 will be prefab, CoverTree offers an affordable, high-tech offering to the growing market.
The funds raised will allow CoverTree to accelerate its mission to reshape the home insurance industry and further develop a business suite that includes the launch of Maple, a resident insurance management software for property managers, Bonsai a binding and underwriting platform for independent agents and lenders, and Sequoia, an automated underwriting and quoting system for insurance book conversions. The Series A round marks a pivotal moment for the company, allowing it to expand its product offerings and strengthen its market presence in a historically overlooked market.
“With the real estate industry continually evolving, we are excited to continue expanding our services to the growing prefab housing industry – we believe this is the future of how all Americans will live” said Adarsh Rachmale, co-founder and CEO of CoverTree. “This investment is a testament to the value we offer homeowners by redefining the insurance experience. With these funds, we will continue to innovate, expand our reach and ultimately provide even more people with peace of mind through our accurate, high-tech home insurance solutions.”
Portage, known for its transformative investments in insurance technology, is excited about the partnership with CoverTree. Once the investment was completed, Portage co-founder and CEO Adam Felesky also joined the board.
“CoverTree’s focused approach to producing home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche markets,” said Adam Felesky, co-founder and CEO of Portage. “With a growing market and the need for affordable housing greater than ever, we are confident in CoverTree’s ability to drive positive change in the insurance landscape and are excited to support their journey.”
“The next phase of growth adds a new dimension to the CoverTree technology platform with the launch of products that combine enterprise software, subscription and artificial intelligence. We have innovated with a unique abstraction layer integrated with our core systems that allows us to grow profitably across various distribution channels. Our distribution technology can reach residents of manufactured homes in relatively rural parts of the United States without running marketing ads,” said Divyansh Sharma, CTO of CoverTree.
As the first digital insurance offering for manufactured homes, CoverTree’s commitment to customer satisfaction has positioned the company as a leading insurtech, setting new standards for transparency, simplicity and personalization in this category. The Series A funding will allow CoverTree to invest in product development, scale its operations and attract top talent to continue its mission of reinventing home insurance.
As CoverTree enters this exciting phase of growth, the company remains steadfast in its commitment to providing unprecedented value to homeowners while reshaping the future of home insurance.