Weatherford Capital’s funding in an Ohio-based insurance coverage firm has bolstered the startup to unicorn standing.
Department, a full-stack insurance coverage firm, has introduced a $147 million Sequence C funding led by Weatherford Capital, bringing Department’s valuation to $1.05 billion.
The insurance coverage firm, which makes use of information, know-how, and automation, launched in 2019 with a give attention to leveraging the ability of group to make dwelling and auto insurance coverage extra reasonably priced.
“Corporations that simplify options to our biggest wants may have a aggressive benefit in our economic system, and Department is doing precisely that. Department is disrupting the insurance coverage market by rising the accessibility and affordability of insurance coverage for all People and we look ahead to being a part of the answer,” Weatherford Capital managing accomplice Will Weatherford mentioned in an announcement.
Collaborating new and present traders embody Acrew, AmFam Ventures, Anthemis, Gaingels, Greycroft, HSCM Ventures, Narya, SignalFire and Tower IV.
“Shoppers are pissed off by escalating insurance coverage prices ensuing from antiquated enterprise fashions and complicated processes,” Steve Lekas, Department co-founder and CEO, mentioned in an announcement. “We imagine that by reintroducing the ability of group by way of information and know-how, we will decrease the price of insurance coverage whereas restoring it to its authentic intent: a pressure for communal good.”
The announcement comes on the heels of an growth into 9 new states in 2022, making Department’s insurance coverage accessible in 28 states. Department has grown its annualized written premium 1300% yr over yr within the final 12 months.
Department has additionally partnered with trade gamers throughout the mortgage, auto, and residential safety industries together with Homepoint, OpenRoad Lending and SimpliSafe.
“For too lengthy, the insurance coverage trade has been stricken by a very costly strategy to buyer acquisition, driving up the value of insurance coverage. Department’s mannequin helps to make sure insurance coverage is accessible for all,” David Seider, principal at Weatherford Capital, mentioned in an announcement. “We’re enthusiastic about this partnership and look ahead to seeing Department shortly and effectively roll out nation-wide reasonably priced, high-quality insurance coverage that each one People deserve.”