- General
- August 22, 2018
- 5 minutes read
3 year old Ohio based insurtech startup Root hits $1 Billion valuation with $100 million Series D funding
A depicition of Root’s mobile app image : Root Automobile insurance tech startup Root has now closed on $100 million…
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| A depicition of Root’s mobile app
image : Root
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Automobile insurance tech startup Root has now closed on $100 million in a Series D funding round led by Tiger Global with the company taking on new financing as it accelerates its strategy and aim to transform the car insurance sector.
Root which was founded in 2015 is being valued at $1 Billion with this round shooting it into the unicorn space while providing new capital for penetration into existing markets, expansion into new states and hiring of talent to support increased scale.
This round which boosts the total funding raised by Root to over $170 million also saw participation from Redpoint Ventures, Ribbit Capital and Scale Venture Partners.
“We are excited that Root continues to attract the commitment and capital of some of the largest and most successful venture funds, like Tiger Global Management, who recognize the power of the Root platform and our prospects for growth and success,” said Alex Timm, Co-founder and CEO of Root.
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| Root Insurance co-founders Dan Manges (left) and Alex Timm
image : Root
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“This additional capital will allow us to accelerate our strategy to transform the car insurance world and reinvent a broken industry from the ground up by setting the new standard for how customers buy and use insurance.”
Root is bringing the estimated $250 billion U.S. auto insurance industry into the mobile age through its products making use of smartphone technology to understand individual driving behavior with customers obtaining personalized insurance quotes after two-to-three week test drives with purchases and management of insurance policies being entirely enabled within its mobile app.
Lee Fixel, Tiger Global partner and Forbes Midas List VC who led this investment added, “Root Insurance is leading digital innovation in U.S. auto insurance. This industry is ripe for change, and we are excited to invest in a team that has the expertise, vision, and momentum to deliver real results. We look forward to growing our partnership with Root and helping them expand their footprint across the United States.”
Root has already expanded into 20 U.S. states and has delivered good growth over the lat 2 years with a reported 4500% year-over-year increase in direct written premiums in the first six months of 2018.
The Ohio based startup is also anticipating to expand to all states in the U.S. by the end of this year.
