InsurTech hepster receives $10 million in Series A funding to expand its embedded insurance platform

Rostock, 05.03.2021 - The Rostock-based InsurTech hepster has received Series A financing of around 10 million US dollars with Element Ventures as the new lead investor. Seventure Partners and existing investors MBMV and GPS Ventures are also involved in the financing round.

hepster was launched in 2016 to shake up the insurance industry - an industry that still largely relies on outdated technologies and sales approaches and has so far failed to evolve in parallel with new, exciting opportunities presented by digital business models. hepster aims to close this gap by offering insurance solutions that are designed with the end customer in mind and are completely digital and customised to the respective use case thanks to the API-driven platform.

Thanks to fully digital processes, the customised insurance solutions can be easily integrated into the respective customer journey and service worlds of hepster's cooperation partners - whether in stationary sales or in the online shop, the rental and hire station or in the leasing application. In doing so, hepster is right in tune with the times: recent studies predict a market potential of around USD 3 trillion by 2030 for the digital insurance market and integrated insurance solutions, so-called "embedded insurances".

Game changer for partners: hepster's business model

By combining its fully digital, integrative insurance approach with flexible tariffs and services, hepster is the first choice for all companies with new, innovative business models that not only want to diversify their offerings, but also want to expand the services they provide to their customers. For example, rental or sharing providers can use hepster to offer their customers a suitable policy directly, which can be booked as part of the service package in addition to the core product - at no extra cost. The insurance can be customised to the needs of the landlord's customers: from the rental period to the desired benefits and exclusions to cost processing. All relevant documents are transmitted to the customer in real time.

Since its launch in spring 2017, hepster has already won over more than 700 partners and around 70,000 customers with its insurance policies. To date, hepster has developed over 200 customised products in the areas of (new) mobility, electronics, sports equipment and travel for its partners and customers.

hepster as one of the leading players in the digital insurance industry

hepster's unique approach to developing needs-based and customised insurance has resulted in continuous growth: in 2020 alone, sales increased by 600% - thanks to increased demand and established partnerships with leading, innovative mobility companies. hepster's partners include European bike dealers and service providers such as Greenstorm Mobility and Rebike Mobility - one of the largest marketplaces in Germany for used e-bikes - as well as Baron Mobility (mein-dienstrad.de) and the Berlin-based cargo bike provider citkar and the Munich-based e-bike startup SUSHI.

To meet this growing demand, hepster is receiving 10 million US dollars from London-based Element Ventures and Seventure Partners from Paris. Existing investors MBMV (Mittelständische Beteiligungsgesellschaft Mecklenburg-Vorpommern) and GPS Ventures are also involved in the financing round. With this financing, hepster intends to expand its platform and extend the API ecosystem with a focus on automation processes.

Christian Range, co-founder and CEO of hepster:

"hepster is now a major player in the European insurance market. With our state-of-the-art technology, our API-driven ecosystem and our strong service-orientated approach, we differentiate ourselves not only from traditional insurers but also from other providers in the market. We are very proud of what our talented team has achieved in recent years and look forward to driving this development forward. Together with our new and existing investors, we want to continue working towards our vision of creating the best insurance experience in the market on a sustainable basis."

Michael McFadgen, Partner at Element Ventures:

"With the emergence of new industries and business models, organisations need much more flexible insurance offerings than what is currently available from traditional providers. hepster has incredible potential in this area and its focus on embedded insurance will pay dividends in the coming years. The team has created a fantastic platform and the exceptional results show that we are not the only ones who believe in it. We are delighted to be working with the hepster team to offer a real alternative in an otherwise stagnant insurance market."

Andreas Schenk, Venture Partner Germany for Digital Technologies at Seventure Partners:

"hepster is a perfect fit for our portfolio. The combination of innovative technology and a broad range of add-on insurance products is unique and represents the values we are looking for in our portfolio. We firmly believe that hepster has what it takes to further establish itself as one of the top players in the European market."