Hepster, a German based insurtech platform, has raised $10 million in a Series A funding. London based Element Ventures Led the round with likes Seventure Partners, MBMV and GPS Ventures, as well as previous investors participating. The funds are mainly intented to help Hepster in automation and scaling up it’s network.
The German insurance market is notoriously slow to new techs and practices, and Hepster is part of a new wave of insurtech startups in the country taking advantage of this. It allows businesses to build insurance policies from scratch, matched specifically to the needs of their individual service or industry. E-commerce players, for instance, can then embed these insurance products into the e-commerce journey.
Hence the companies products are suited and much needed for the emeging sectors such shared e-bike schemes and peer-to-peer rental platforms. Businesses such as these are rarley covered by technologically adament traditional German insurance sector. At the same time, Hepster also caters to traditional, established industries.
The startup now bosts more than 700 partners, including European bike retailers and rental companies Greenstorm Mobility and Baron Mobility, as well as Berlin-based cargo bike provider Citkar and Munich e-bike startup SUSHI.
Christian Range, Hepster co-founder and CEO, said in a statement: “Hepster is now a key player within the European insurance market. Our state-of-the-art technology with our API-driven ecosystem, as well as our highly service-oriented approach, sets us apart.”
In an interview he told me: “Germany is the toughest market with the most regulations, the most laws. We have a saying in Germany, if you can make it in Germany, you can make it everywhere. Also, it’s a big market in terms of selling insurance products because Germans really like insurance in every regard. So there is huge market potential in Germany I think.”
Michael McFadgen, partner at Element Ventures, said: “As new industries and business models emerge, companies need much more flexible insurance propositions than what is currently being offered by traditional brokers. Hepster is the breakout company in the space, and their focus on embedded insurance will pay dividends in years to come.”