Community-driven insurtech gears up for European growth with $4.7m investment
A community-driven insurance technology firm is set to expand across Europe after closing a multi-million dollar funding round.
Laka, which specialises in an alternative community-based insurance model, has secured $4.7m in an investment round led by venture capital firms LocalGlobe and Creandum.
Launched in 2018, Laka offers cycling insurance, operating an alternative model with customers sharing the cost of claims and having a monthly spend cap based on the value of the equipment insured.
This latest funding round, which also saw participation from Yes VC and angel investors including Rapha chairman Nick Evans and Fitness First CEO Oren Peleg, will enable the London-headquartered firm to launch in the Netherlands as well as enhance its proposition.
Tobi Taupitz, CEO of Laka, commented: “Cyclists should be able to completely trust their insurance providers - through our community-based approach, we are bringing our customers, many of whom have previously been ill-served by legacy players, a product that ensures fair treatment, trustability and transparency.
“We’ve seen a fantastic response from the British cycling community, who have become our greatest advocates, and we’re looking forward to launching Laka across Europe and beyond.”
Remus Brett, partner at LocalGlobe, added: “The beauty of Laka is it returns insurance to its pure, mutual heritage. Laka’s members and their shared interests incentivise positive behaviour which in turn benefits the entire community.
“These principles are over 300 years old, the difference being technology and increasing consumer awareness that traditional insurance models, with complex clauses, excesses and a painful claims process are fundamentally broken. “
Carl Fritjofsson, partner at Creandum, concluded: “The word disruption is used all too often in the world of entrepreneurship, but with Laka it actually fits very well. This is a fundamentally unique and different approach that turns the old business model of insurers upside down.
“Laka truly improves the user experience 10x as well as lowers costs for its policyholders, all while providing a fair and transparent insurance coverage. What’s not to love?”
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