CoverTree, an US-based insurtech startup focused on manufactured homes, raised $13 mn in a Series A funding round, bringing its total funding to $23 mn.
Notable investors AV8 Ventures, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, and Annox Capital participated in the investment.
Portage led the capital injection, aimed at expanding operations across Arizona, Indiana, Michigan, New Mexico, Ohio, Illinois, and Tennessee.
This expansion reflects the company’s commitment to underserved markets by providing affordable and accessible insurance products.
The company plans to broaden its product range, including launching Maple, a software for managing resident insurance; Bonsai, a platform for binding and underwriting; and Sequoia, a system for automated underwriting and quoting (see about Global InsurTech Funding in 2024).
With the continually changing homeownership industry, we are excited to continue expanding our services to the growing manufactured housing industry: we believe this is the future of how all Americans will live
Adarsh Rachmale, Co-Founder and CEO of CoverTree
“With these funds, we will continue to innovate, expand our reach, and ultimately provide even more individuals with peace of mind through our high tech and accurate home insurance solutions,” Adarsh Rachmale says.
The company’s leadership said both the challenges and opportunities within their niche market.
Adarsh Rachmale, co-founder and CEO of CoverTree, highlighted how major carriers have traditionally overlooked specialty insurance and manufactured homes, resulting in inefficiencies and high costs for consumers.
Insurtech plan to transform this segment by using robust coverage options, advanced pricing, and innovative technology to improve customer experience and affordability.
Portage, known for its investments in insurtech, has shown strong support for its partnership with CoverTree. After a successful funding round, Adam Felesky, Co-Founder and CEO of Portage, joined CoverTree’s board of directors, taking a more direct role in guiding the company’s strategic direction.
This move demonstrates Portage’s commitment to CoverTree’s success and brings valuable industry expertise that could be crucial in achieving the company’s business goals.
CoverTree’s focused approach on manufactured home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche marketsAdam Felesky, Co-Founder and CEO at Portage
“With a growing market and the need for affordable housing greater than ever, we are confident in CoverTree’s ability to drive positive change in the insurance landscape and are excited to support their journey,” Adam Felesky says.
“The next stage of growth adds a new dimension to the CoverTree technology platform with the launch of products combining Enterprise Software, underwriting, and AI. We have innovated with a unique abstraction layer integrated with our core systems that allows us to grow profitably in various distribution channels. Our distribution technology is able to reach manufactured home residents in relatively rural parts of the US without running marketing ads,” says Divyansh Sharma, CTO at CoverTree.
CoverTree is an insurtech company specializing in providing insurance solutions for specialty markets, particularly focusing on manufactured homes.
Founded by Adarsh Rachmale and others, CoverTree addresses the traditional neglect by major insurance carriers of these niche segments, which often results in inefficiencies and higher costs for consumers.
CoverTree aims to revolutionize this market through the integration of advanced technology and innovative strategies.
By partnering with Markel, the company leverages robust coverage options, sophisticated pricing models, and cutting-edge technology to enhance customer experience and affordability. This approach allows CoverTree to offer tailored insurance solutions that better meet the needs of their target market.
The company has gained significant support from investors, including Portage, a notable player in the insurtech investment space.
Following a successful funding round, Adam Felesky, Co-Founder and CEO of Portage, joined CoverTree’s board of directors.
His involvement signifies strong investor confidence and brings additional industry expertise to guide CoverTree’s strategic direction.
CoverTree’s mission is to streamline and improve the insurance process for specialty markets, making it more efficient and cost-effective for consumers.
By focusing on technological innovation and customer-centric solutions, CoverTree seeks to become a leading provider in the specialty insurance market.
The funds will be used to innovate and expand the company’s reach, aiming to provide reliable and precise home insurance solutions.
Rachmale noted the historical neglect of specialty insurance for manufactured homes by major carriers, resulting in inefficiencies and high costs for consumers. By partnering with Markel, CoverTree seeks to transform this market segment through advanced coverage options, sophisticated pricing, and cutting-edge technology.
Portage, known for its insurtech investments, demonstrated strong support for CoverTree by having its Co-Founder and CEO, Adam Felesky, join CoverTree’s board of directors.
