Related auto insurance startup Flock is elevating $ 17 million Sequence A beneath the management of Chamath Palihapitiya, based on Twittersmash
Think back to the scene in Minority Report where all those autonomous cars were whizzing around town. The more practical among you may have said: "Yes, but what about insurance …?"
One of the startups currently building the connected, on-demand insurance world for the vehicles of tomorrow is UK-based Zego, which has raised $ 201.7 million. Another is Flock.
Emerging from an academic project to study drones, Flock switched to offering drone insurance and then commercial vehicle insurance. The trick is that it locks into the telematics of cars so that the vehicle only triggers insurance cover when it is actually moving, not when it is in the parking lot without an accident.
Flock has now raised $ 17 million in Series A funding led by Social Capital, Chamath Palihapitiya's investment vehicle best known as a SPAC investor and chairman of Virgin Galactic. The existing investors from Flock, Anthemis and Dig Ventures, also took part. This round brings Flock's total funding to $ 22 million. Justin Saslaw (Fintech partner of Social Capital) joins Flock's board of directors, as does Ross Mason (founder of Dig Ventures & MuleSoft).
Ed Leon Klinger, CEO of Flock, said: “Traffic is changing faster than ever, but the traditional insurance industry cannot keep up! The proliferation of electric cars, new business models such as ride sharing and the emergence of autonomous vehicles pose major challenges for which traditional insurers are simply not equipped. "
He added, “Modern fleets need an insurance company that is as modern and as fast as they are. Commercial auto insurance is a $ 160 billion market that is crying out for disruption. The opportunity that lies ahead of us is enormous. "
In a statement, Chamath Palihapitiya, CEO of Social Capital said, “Flock bridges the gap between today's insurance industry and tomorrow's traffic realities. By using real-time data to truly understand vehicle risk, Flock meets the needs of our rapidly evolving, hyper-connected world. Flock has the potential to open up and enable a truly autonomous world and even save lives. We look forward to being part of your journey. "
In a conversation with me, Klinger explained how the company has found a sweet spot by connecting to telematics APIs for cars or by special integrations with existing providers and OEMs: “We have developed our own integrated approach, in which we work with a few and we build bespoke integrations with them. Often they are not as advanced as others. So we either use our integration platform or we use their approach. We are highly flexible. The central value proposition at Flock is its flexibility, so we do not force our own integration approach. "