Clearcover has closed $50 million in Series C funding led by OMERS Ventures. This round follows the company's $43 million Series B, which closed in January 2019, and brings Clearcover's total funding to more than $104 million since its 2016 founding. Previous investors American Family Ventures, Cox Enterprises and IA Capital Group also participated in the round. Michael Yang, managing partner at OMERS Ventures, will join Clearcover's board.
Clearcover plans to use the funding to continue building the technology powering its industry-leading cost efficiency and customer experiences. In addition, the new capital is expected to allow Clearcover to accelerate growth by continuing its expansion in existing markets and launch in new states throughout the U.S., and integrating additional distribution channels in the automotive and financial services space.
The company plans to double its current headcount across product, engineering and data science with local and remote options.
"The market is taking notice of how Clearcover is redesigning the model of running an insurance company in further service of customers,” Clearcover Co-Founder and CEO Kyle Nakatsuji said in a statement. “OMERS Ventures brings a wealth of resources and experience to support scaling our business, making them the ideal partner as we take on the next stage of growth. This investment enables us to continue delivering better coverage — for up to 230 million licensed US drivers — for less money."
OMERS Ventures’ Yang added: "We are excited to support Clearcover's mission to disrupt the future of auto insurance. Clearcover's business strategy and technology foundation for sustaining a long-term competitive advantage, combined with its vision for the modern customer experience, is incredibly compelling. We believe in Kyle Nakatsuji and the entire Clearcover team to revolutionize the insurance industry and deliver significant value for their customers."
In 2019, Clearcover tripled policy sales year over year while quadrupling premium. Currently available in Arizona, California, Illinois, Ohio and Utah, Clearcover is striving to become a full-stack carrier in all 50 states and expand its partnership footprint to make insurance more convenient when a customer needs it.