Tech
Check out the pitch deck that insurance startup Luko used to raise $61 million, bucking a wider slowdown in funding
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- French insurance startup Luko has raised €50 million ($61 million) in Series B funding led by EQT Ventures.
- The company focuses on property insurance and claims to have grown six-fold since its previous funding round.
- The big round bucks the wider trend in the insurtech sector, with investment trending down at the beginning of 2020.
- “This funding is a great proof point for us,” Luko cofounder and CEO Raphael Vullierme told Business Insider in an interview. “Our business is strong because of our growth and transparent model.”
- Visit Business Insider’s homepage for more stories.
Luko, a fast-growing French insurance startup, has raised a major new funding round.
Founded in Paris in 2018, Luko has just brought in €50 million ($61 million) in Series B funding led by EQT Ventures. The company focuses on property insurance and says it has grown six-fold since its previous funding round.
The company would have grown ten-fold if not for the coronavirus pandemic, according to its cofounder and CEO Raphael Vullierme.
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“We had a few months of lockdown where there was no growth,” he told Business Insider in an interview. Despite the Covid-19 impact on business, the company says its fundraise was competitive.
“We set out a two-week window for funds to submit term sheets at the start of September,” Vullierme said.
EQT Ventures were first over the line and Vullierme said Rania Belkahia, who led the deal for the Swedish fund, was key to the process.
“She used to be an entrepreneur, so we have a similar network and I was very impressed with her work,” Vullierme added. “It’s less common now to have an entrepreneur on your board and I thought this might be the last chance we’d have to do that.”
Existing investors Accel, Founders Fund and Speedinvest also participated in the round. The funding will go towards continuing Luko’s expansion in terms of staff, product, and markets.
The big fundraise bucks a broader slowdown in investment in the insurtech sector. According to PitchBook, global venture capital investment in insurtech fell from $1.8 billion in Q4 2019 to to $785 million during the first quarter of 2020.
“We had to pause launching overseas because we focused on runway during Covid-19,” Vullierme said. “We will add new countries next year.” The startup will also likely double the size of its 85 strong team in the next 12 months.
Some 70% of Luko’s premiums are pooled with other customers’, and this pool is used to pay compensation, with around 30% going towards Luko’s management costs. Remaining premiums left in the pool at the end of the year are donated to charities chosen by policyholders.
The B-Corp certified company has over 100,000 policyholders, it said. Luko’s next step will be a new feature called “Doctor House”, a video consultation service where experts show users how to prevent wear and tear at their property.
Check out Luko’s pitch deck below:
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