Topics
late
AI
Amazon
Image Credits:Honeycomb Insurance / Itai Ben-Zaken, founder Honeycomb Insurance /
Apps
Biotech & Health
Climate
Image Credits:Honeycomb Insurance / Itai Ben-Zaken, founder Honeycomb Insurance /
Cloud Computing
Commerce
Crypto
go-ahead
EVs
Fintech
Fundraising
Gadgets
gage
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
privateness
Robotics
Security
societal
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
reach Us
When Itai Ben - Zaken ’s first startup failed in 2018 , the former BCG advisor and Wharton MBA drop months taste to understand what he could have done differently during the five years he start the company .
After analyzing most of his major decision , he conclude that while Comprendi , a digital advertizing recommendation business , was an interesting offering , its biggest misunderstanding was trying to operate in a market with two dominant actor : Google and Facebook .
So when Ben - Zaken started exploring founding his second inauguration , he vowed not to recur the same mistake . He look to get a business concern in a market divide among many competitors , finally settle on ramp up a company that tender property and casualty policy for landlord and condo associations .
The largest carrier in landlord insurance policy — Travelers — represented only about 7 % of the market , and the residual of the competitive landscape was distributed among 100 smaller providers , Ben - Zaken told TechCrunch .
Ben - Zaken was n’t a stranger to insurance . Before starting Comprendi , he spend four yr running Insurance.com at QuinStreet , an operator of lily-white - labeled financial services marketplaces .
He launchedHoneycomb Insurancein 2019 , and after spending two years building the society ’s computer vision and AI - driven property “ review ” engineering science , the company sold its first policy in 2021 . Ben - Zaken sound out that Honeycomb ’s AI relies on aeriform photographs of building roofs , often eliminating the need for costly forcible inspections .
The company invoke a $ 15 million Series A in other 2022 and is presently on track to deal $ 130 million of insurance premiums in 2024 , a threefold increase from last year .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
When Honeycomb was pitch up to set up its Series B earlier this twelvemonth , one of the first calls Ben - Zaken made was to solo venture capitalist Oren Zeev , who ’s known for being one of the largest shareholders in Navan , Houzz , Next Insurance and Tipalti .
“ I was blown by by what I saw , ” Zeev said about Honeycomb . He tally to back Honeycomb , but only if Ben - Zaken would gibe not to market the deal to other investor .
Ben - Zaken did n’t think twice about Zeev ’s proposal : He dreamed of having the solo VC as his angel and on Honeycomb ’s board since he launch the company .
Zeev indite a $ 30 million check to Honeycomb , making him the company ’s largest shareholder . Other participant in the $ 36 million Series B that the Chicago - found startup is foretell on Tuesday let in new investor Arkin Holdings and Launchbay Capital and repay angel Ibex Investors , Phoenix Insurance , and IT - Farm .
Zeev , too , is not a stranger to the insurtech space — he holds a large stake in Next Insurance and was a angel of Hippo Insurance before it went public via a SPAC in 2021 — but he said he is not by and large “ a buff ” of the sector .
“ I was not appear for another investment in policy , ” he told TechCrunch . “ The bar is very high because I am cognizant of the challenge . ”
Besides the society ’s fast growth , what attracted Zeev to Honeycomb is that landlord insurance policy is a “ sleepy-eyed ” industry ready for innovation , but also the sector is not expectant enough for insurance behemoth to want to harness it . In other words , Zeev is n’t worried that major players will infringe on Honeycomb ’s territory , as they did on Ben - Zaken ’s first startup .
According to Ben - Zaken , the landlord and condo association insurance policy marketplace continues to be extremely fragmented . He says there are two startups in the space : Steadily , which raised a $ 28.5 million Series B last July , andObie , which come together on a $ 25.5 million Series B from Battery Ventures a class ago .
Honeycomb will use its fresh funding to double its headcount from 90 to 180 employees over the next 18 months , introduce new product , and expand its offerings to unexampled markets .
“ We are planning to go beyond landlord insurance , ” Ben Zaken suppose , adding that his company ’s end is to be a one - stop shop for commercial-grade real estate policy .
