Buying insurance is typically not a fun process and even with all the information that the internet provides at your fingertips, you may still feel lost in navigating all the offerings. Policygenius is the authoritative source that provides unbiased information on practically every form of insurance that you may need – whether it be life, auto, health, or even pet insurance. With a few clicks, you will have all the information that you need and you can easily apply for and buy the insurance plan of your choice through a licensed advisor on the platform. The company has been growing at a breakneck pace and currently has an annualized revenue of $60M.
AlleyWatch caught up with CEO and Cofounder Jennifer Fitzgerald to learn more about the state of the insurance market, the company’s expansion plans, and recent funding round, which brings its total funding to $151.1M. We first spoke to Jennifer in 2014 after Policygenius’ launch and then again in 2016 after Policygenius’ Series B round. It’s remarkable to see how far the company has come along and the impressive traction that it has built.
Who were your investors and how much did you raise?
Policygenius raised $100 million in Series D funding from global investment firm KKR and other major existing Policygenius investors, including Norwest Venture Partners, Revolution Ventures, Susa Ventures, AXA Venture Partners, MassMutual Ventures and Transamerica Ventures.
Tell us about the product or service that Policygenius offers.
Policygenius is the nation’s leading online insurance marketplace, helping people across the country shop for all types of insurance — including life, disability, homeowners, auto and renters insurance — like they shop for everything else — online.
What inspired the start of Policygenius?
During our time at McKinsey, my cofounder, Francois de Lame, and I found ourselves repeatedly asking why buying insurance is such a frustrating experience. So we stepped out on our own and created Policygenius as the easy solution to comparing and buying insurance.
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How is Policygenius different?
Policygenius is an insurance marketplace that uses sophisticated proprietary technology to help people secure the insurance coverage they need. And this goes for all types of insurance — whether that be life, disability, home, auto, renters, or any other type of insurance. We also make insurance easy to understand because we want to help people feel confident in their financial decisions.
What market does Policygenius target and how big is it?
As the nation’s leading online insurance marketplace, Policygenius caters to anyone in the market for insurance. That could be people who need life, disability, home, auto, renters or any other type of insurance. And because we work with a variety of insurance companies, we have coverage options that are right for people of all different backgrounds.
What’s your business model?
Policygenius is a digital marketplace. Similar to the way you would shop for travel deals on Kayak or consumer goods on Amazon, you can shop for all your insurance needs with Policygenius.
How has the business changed since we spoke after PolicyGenius’ Series B round in 2016?
Wow, that seems like a lifetime ago. So much has happened. Policygenius has seen massive growth. Last year alone, we expanded into the home and auto insurance sectors — which we scaled to more than $10 million in revenue in less than 12 months. We’ve also opened a second headquarters in Durham, North Carolina, and hired more than 200 employees since Series B.
What was the funding process like?
The fundraising process is never easy, especially for a later stage like a Series D round. That said, we found the market to be really receptive to the Policygenius story, and our prospects for the future. We last raised nearly 3 years ago, funding our own growth in the interim with our revenues, which means we had significant proof points and traction for investors to be excited about.
What are the biggest challenges that you faced while raising capital?
The insurance technology space saw more funding in the first three quarters of 2019 ($4.4 billion) than in all of 2018 according to WillisTowersWatson, so one challenge was that the fintech industry is becoming an increasingly crowded and competitive space. However, Policygenius has a distinctive model in the market and is one of the leaders in the space, which did a lot of heavy lifting in the process.
What factors about your business led your investors to write the check?
KKR, in particular, was impressed by our use of proprietary technology as well as the traction we’ve earned from consumers and insurance companies alike. KKR has a lot of experience in insurance, as well as technology companies, so they had very strong conviction about our model and trajectory.
What are the milestones you plan to achieve in the next six months? We are always looking to grow. That includes scaling business operations, hiring new top tier talent and launching new products.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
This is Policygenius’ most recent round of funding in more than 36 months, meaning we’ve made efficient use of our capital. The advice I would give to people who haven’t just gone through a new round of funding is to make your money count — don’t fundraise for the sake of fundraising.
This is Policygenius’ most recent round of funding in more than 36 months, meaning we’ve made efficient use of our capital. The advice I would give to people who haven’t just gone through a new round of funding is to make your money count — don’t fundraise for the sake of fundraising.
Where do you see the company going now over the near term?
Policygenius will continue our explosive hiring plan, which brought in around 180 new employees in 2019, as well as introduce broader consumer financial protection products later in 2020.
What’s your favorite restaurant in the city?
Chez Ma Tante in Greenpoint. Their pancakes truly change the game.
Nominations are now open for AlleyWatch’s 2020 NYC Tech Influencers feature. Know someone amazing who belongs on this list? Nominate them today here. Nominations open until 2/4. Looking to drive targeted response from the NYC Tech community at scale, learn more about partnering with AlleyWatch on this initiative here.
