Hepster, an insurtech platform from Germany, has raised $10 million in a Collection A funding led by Aspect Ventures. Additionally taking part was Seventure Companions, MBMV, and GPS Ventures, in addition to earlier traders. The funds will probably be used to broaden the Hepster insurance coverage ecosystem and scale up its community, with an emphasis on automation.
The German insurance coverage market is famously sluggish at adopting new practices, and Hepster is a part of a brand new wave of insurtech startups within the nation benefiting from this. It permits companies to construct insurance coverage insurance policies from scratch, matched particularly to the wants of their particular person service or business. E-commerce gamers, for example, can then embed these insurance coverage merchandise into the e-commerce journey.
Its merchandise are due to this fact higher suited to the brand new sector of, for instance, shared e-bike schemes and peer-to-peer rental platforms, that are not often lined by conventional brokers in Germany. Nonetheless, it additionally caters to conventional, established industries as properly.
It now has greater than 700 companions, together with European bike retailers and rental firms Greenstorm Mobility and Baron Mobility, in addition to Berlin-based cargo bike supplier Citkar and Munich e-bike startup SUSHI.
Christian Vary, Hepster co-founder and CEO, stated in a press release: “Hepster is now a key participant inside the European insurance coverage market. Our state-of-the-art expertise with our API-driven ecosystem, in addition to our extremely service-oriented method, units us aside.”
In interview, he advised me: “Germany is the hardest market with essentially the most rules, essentially the most legal guidelines. We have now a saying in Germany if you may make it in Germany, you may make it all over the place. Additionally, it’s a giant market by way of promoting insurance coverage merchandise as a result of Germans actually like insurance coverage in each regard. So there may be large market potential in Germany I believe.”
Michael McFadgen, associate at Aspect Ventures, stated: “As new industries and enterprise fashions emerge, firms want rather more versatile insurance coverage propositions than what’s at present being supplied by conventional brokers. Hepster is the breakout firm within the area, and their deal with embedded insurance coverage can pay dividends in years to come back.”