The Israeli institutions are investing in the non-profit companyShortK Hippo by Israeli entrepreneurs Assaf Wend and Eyal Navon. In recent days, Hippo has raised $ 150 million at a value of $ 1.5 billion after the money. This time, a significant part of the raising was done by Israeli investors.
Clal Insurance, Psagot Investment House, Poalim Capital Markets and the Japanese insurance company MS&AD joined the venture capital fund FinTlv, and established a dedicated company, which invested $ 55 million in Hippo and will now hold close to 4% of the company’s shares. In addition, the Hippo fundraising round also participates in the fintech fund Ribbit and current Hippo shareholders such as Comcast and Lanner, and other entities.
Hippo raised it, among other things, so that it could carry out an acquisition of the Spinnaker insurance company, with which it had previously worked in cooperation, and will now take over it for $ 100 million. This fundraiser takes place a year after Hippo raised $ 100 million at a value of $ 1 billion, meaning its value soared by 50% within a year. In total, Hippo has raised over $ 350 million since its inception 5 years ago, and it is estimated that this is the company’s last round of fundraising before it is sold or goes public.
Hippo insures homeowners and apartment owners (structure and contents) in the United States. This is a market that rolls in over $ 100 billion a year, and one that has been controlled for years by a number of traditional companies. Hippo performs the process of underwriting and selling the insurance digitally, which allows it to offer an attractive price in many cases compared to the prices of traditional companies. This is how it manages to take market shares from traditional companies and grow by tens of percent a year. Hippo is expected to reach operations in all U.S. states by the end of next year, and is estimated to end 2020 with premiums totaling over $ 300 million.
One of Hippo’s competitors is Lemonade – an Israeli inshortech company that operates mainly in the United States, and is considered a success story. It turned out that the insurance company Harel also invested in Lemonade in the private fundraising round, and it owns 1.3% of the company, on which it profits tens of percent.