Insurtech Will Provide Essential Risk Mitigation to New York’s $147 Billion Startup Ecosystem as the State Enters Crucial Rebuilding Phase
NEW YORK, Oct. 20, 2020 (GLOBE NEWSWIRE) — Vouch Insurance, the business insurance platform for startups, today announced the expansion of its coverage into New York, one of the largest and most resilient hubs for innovation in the world. The expansion will bring risk mitigation to local startups as they scale their technologies within one of the leading U.S. technology markets.
In a tumultuous year defined by the COVID-19 pandemic and its widespread economic impact, New York’s startup and venture capital landscapes are increasingly crucial to the state’s economy, playing a key role in New York’s perseverance and growth as it rebuilds. With over 9,000 startups valued at $147 billion, New York is already the second most valuable startup ecosystem in the world. Building resilient business foundations is more crucial than ever as this growth continues amidst the COVID-19 landscape.
As one of the only insurtechs in the U.S. with the specific technology to underwrite and serve early stage startups, Vouch has expertise in the unique risks that New York startups face. In addition to nationwide economic challenges including a 40% drop in startup exits across the U.S., New York’s tech companies must also navigate the uncertainties of reopening and some of the country’s strictest employment laws, subjecting them to intense scrutiny as they expand their remote and in-person workforces. Vouch will play an essential role in helping startups plan for these challenges by delivering risk mitigation expertise, anti-workplace harassment training from partner Ethena, and rapid, affordable insurance coverage that understands the nuances of their company and the importance of ethical business foundations.
“New York is not just for digital media and fintech anymore. My experiences working with startups in New York taught me what it takes to thrive in one of the world’s most critical tech hubs, and showed me how New York’s startup diversity is its strength,” said Vouch CEO and co-founder, Sam Hodges. “Our goal is to help New York’s disruptive startups bend the risk curve by leading scaled-up, ethically-managed companies that are building for the future amid the challenges and opportunities ahead.”
Vouch’s expansion comes after a year of powerful momentum for the company. After raising a $24.5M series A in September 2019 and following with a $45M series B in November 2019, Vouch scaled its insurance coverage throughout 22 states in less than 12 months, and expanded its offering to serve mature series B-level startups in July 2020. In September 2020, Vouch announced an industry-first partnership with leading anti-harassment training company Ethena, creating a new standard for responsible startups. The New York expansion marks a major milestone in Vouch’s growth, making its services available to 91% of the venture-backed startup market nationwide.
Vouch underwrites proprietary coverage for startups of up to 150 employees and $75 million in capital raised. Its digitized underwriting platform and personalized approach to risk mitigation create a tailored package of insurance policies within 10 minutes and implementation within 24 hours (a sharp contrast from the average 60-90 day timeline of traditional insurers). Vouch’s coverages include Business Property, General Liability, Directors & Officers, Employment Practice Liability, and Cyber Coverage.
Vouch’s proprietary policies are backed by Digital Partners, a Munich Re company, one of the largest A-rated reinsurers in the world. Vouch is also a preferred insurance provider for Silicon Valley Bank, and backed by Y Combinator Continuity.
Vouch is a new kind of insurance platform for startups, offering fully-digital, tailored coverage that takes minutes to activate. Vouch works directly with its clients to provide insurance and help manage and avoid risks, rather than brokering their insurance out to legacy carriers, so founders can focus on building their business. Vouch was founded by Sam Hodges and Travis Hedge, who experienced firsthand the value of insurance coverage tailored to a startup’s needs. Vouch is backed by Y Combinator, Ribbit Capital, and Index Ventures, and is backed and trusted by Silicon Valley Bank to serve its client base. Vouch has offices in San Francisco and Chicago. Learn more at vouch.us or on Twitter @vouch_group.
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