Insurtech startup Honeycomb has raised $15.4 million in a Series A funding round led by Ibex Investors, the company announced Thursday.
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The digital insurance provider has developed the first technology stack for multi-family properties that dramatically streamlines the process for landlords and condo owners associations seeking insurance.
Honeycomb's proprietary artificial intelligence (AI)-driven technology also delivers bespoke insurance coverage instantly.
The US and Israel-based company, which only began writing US policies in June of 2021, now operates in four states – Illinois, Arizona, Michigan, and Ohio – with plans this year to launch in ten more states covering 60% of the country. Honeycomb expects to insure more than $1B of real estate assets by the end of Q1 2022.
"Commercial lines insurance and specifically insurance for multi-family properties is ripe for disruption given the sheer complexity entailed in underwriting this class of risk, its manual processing legacy, and the absence of a leader in the market," observed Honeycomb's co-founder and CEO Itai Ben-Zaken. "At Honeycomb, we have succeeded in converting the institutional knowledge of our team of industry veterans into algorithms that parse deep, first-party, location-specific data to more accurately evaluate risk. As a result, we can perform more robust underwriting quicker and at a lower cost structure than previously possible," he added.
