Durham-based insurtech honcho has reached its £700,000 ($908,000) crowdfunding target and is now overfunding.
The start-up was equity crowd raising on Crowdcube. Launched just before Christmas 2019, over 350 investors have decided to take part with sums between £10 and tens of thousands of pounds.
In addition, investors have come from across the UK as well as overseas countries such as Germany, Italy and Malaysia.
honcho CEO Gavin Sewell said: “Crowdfunding is a fantastic way for businesses to raise investment and there have been some huge success stories, such as Monzo Bank and BrewDog, where members of the public have been able to get involved in investing in really exciting new businesses via crowdfunding. We’re delighted that for a second time crowd investors have backed our business, getting behind our mission to bring much-needed trust, transparency and fairness to the insurance industry.
“It’s been an amazing journey already and today we’ve burst through our £700,000 funding target, but we aren’t stopping yet!
“Our equity crowd raise is now ‘overfunding’, which means that there is still time for investors to own a part of honcho. We’re really excited about the future of our business, and with over 350 investors already involved in this round, the time is now for other potential investors to consider honcho.”
honcho was a founding member of a group of 31 insurtech start-ups, Insurtech UK, in December 2018.
The industry representative body will become a formal association in 2019. It will aim to support the growing insurtech sector in the country.
Additionally, Insurtech UK will engage with regulators and also work with incumbents to address the issues being faced by the insurtech sector.
Other firms have already collected large amounts of funding in 2020.
Clearcover, a US based insurtech company focused on providing car insurance solutions, has raised $50m in a Series C funding round led by Canadian multi-stage investor OMERS Ventures.
The new funding for the auto insurance start-up comes almost a year after it raised $43m in a Series B round led by Cox Enterprises.
Furthermore, Corvus Insurance has secured $32m in Series B venture funding. The round is led by Telstra Ventures, with participation from Obvious ventures.
Additional investors include: 406 Ventures, Bain Capital Ventures and Hudson Structured Capital Management. Telstra Ventures partner Marcus Bartram will also join Corvus’ board of directors.