Compare the Market owner backs insurtech startup looking to disrupt SME sector
The owner of comparison website Compare the Market has backed a London-based insurtech startup in a Series A funding round worth $10.4m.
Digital Risks offers personalised, subscription-based insurance cover that’s designed to meet the needs of small and medium-sized businesses.
The investment was led by BHL Holdings, owner of Compare the Market, with other participants in the round including Nire Capital and existing investors Concentric, Beazley and Seedcamp.
Digital Risks is growing by 25% monthly and is looking to triple its headcount by the end of the year. It counts Starling, Revolut and Appear Here among its partners.
The investment will be used to develop its technology and drive expansion over the next 12 to 18 months.
Founded in 2015, Digital Risks was co-founded by CEO Cameron Shearer and Ben Rose (pictured), chief underwriting officer.
Shearer said: “The SME sector as a whole is highly fragmented. The traditional players’ propositions take a generalist approach to their products and user experience. As a result millions of SMEs in the UK and across Europe are neglected and underserved.
"We’re challenging this status quo head on, modernising business insurance for the better, and building a brand that businesses want to advocate. Our approach looks at every insurance cover from a new perspective. Rather than asking what risks we’re willing to cover, we ask what businesses need and then find the solution."
Ian Leech, CFO at BHL, said Digital Risks was "leading the charge" in disrupting the "deeply ingrained" insurance sector.