Hedvig raises $10.4m for 'nice insurance'
Swedish insurtech Hedvig has raised SEK100 million ($10.4 million) in a funding round led by Twitter co-founder Ev Williams' Obvious Ventures.
D-Ax, the venture arm of the Axel Johnson Group, and existing investor Cherry Ventures joined the round, which values Hedvig at around $35 million.
Hedvig says it is bringing "nice" insurance to the masses, taking on the large anonymous companies that dominate the market and make it slow and difficult to get payouts.
Launched last year, the firm has 15,000 customers in Sweden for its homeowner, renter and student insurance, all managed via an app, with AI used to price premiums and process claims.
The firm operates a similar business model to fast-growing US contemporary Lemonade, taking a flat fee of 20% to deliver its service and putting the remaining 80% aside for claims, with any surplus going to charity.
The funding will be used to develop new services and expanding the startup's footprint in Sweden while also moving into new markets.
Lucas Carlsen, CEO, Hedvig, says:
"For too long the insurance industry has been rewarded for making their service hard to use, confusing and unfriendly. Hedvig is here to change that".
"With our new investors we’re more convinced than ever that we can bring our nice insurance to an extremely wide audience."