Israeli American Digital Insurance Company Beehive Today it announced that it has raised $36 million in a Series B funding round led by Zeev Ventures, with participation from new investors Arkin Holdings and Launchbay Capital. Existing investors Ibex Investors, Phoenix Insurance and IT-Farm also participated in the round. This brings the total amount raised by the company to date to $55 million.
Honeycomb was founded by CEO Itai Ben Zakan and CTO Nimrod Sadot. The company began selling mortgage insurance in the United States in June 2021 and currently operates in 16 states, making up 60% of the US market. Honeycomb has issued $21 billion worth of property insurance policies and expects to triple that amount over the next 12 months. Honeycomb issues landlord insurance in a market estimated to be worth about $34 billion annually in the United States.
The company expects to double its workforce from 90 to 180 over the next 18 months, with several new hires planned at the company's development center in Herzliya.
Honeycomb's proprietary AI technology enables precise risk management, underwriting “at the individual building level,” and providing consistent coverage at a better price for well-maintained properties. Honeycomb simplifies the client and broker experience, leverages unique underwriting technology, and delivers insurance coverage that adapts to clients' ever-changing needs. Due to its technical advantage, Honeycomb does not need to impose “blanket limits” on the age of the properties it insures or similar class restrictions.
The company sells its policies directly via its platform and through a growing group of insurance brokers, who can effectively “bulk quote” an infinite number of orders in real time, optimizing a process that used to take weeks to complete, and translating into more profitability for brokers and meaningful value for clients. .
Bin Zakan said: “The new funding will be used to further improve the end-user experience, enhance profitability for our broker partners, and expand the type and volume of policies offered. We plan to deepen our technological advantage through proprietary AI models.” Leveraging unique first-party data and expanding into new insurance markets, turning Honeycomb into a one-stop-shop for all things commercial real estate insurance in the United States.
Oren Zeev, co-founder of Zeev Ventures, added, “Honeycomb is an example of an insurtech company that solves a big problem in a huge market, allowing it to grow ARR at a rapid pace and advance to operational profitability in a short time.”
Published by Globes, Israel Business News – en.globes.co.il – on May 7, 2024.
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