Honeycomb Insurance, a US-based digital property and casualty insurer covering landlords and condo associations, has raised $36m in its Series B funding round.
The funding was led by Zeev Ventures, with participation from new investors Arkin Holdings and Launchbay Capital, as well as existing stakeholders Ibex Investors, Phoenix Insurance and IT-Farm.
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Landlords seeking insurance face a challenging market, with many traditional insurers tightening their criteria, the insurer noted.
Honeycomb leverages AI-driven technology to provide granular risk management and underwriting at the individual building level.
This allows the insurer to offer coverage without imposing “blanket limitations” on property age or other broad restrictions.
Honeycomb claims to have covered more than $21bn in real estate assets across 16 states, representing around 60% of the US market.
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By GlobalDataWith the new capital, Honeycomb aims to triple its insured asset value within a year and expand into new insurance markets while accelerating its AI insurance solution innovations.
To support its growth plans, Honeycomb is looking to double its workforce from 90 to 180 in the next 18 months.
Headquartered in Chicago, Illinois, the company sells policies both directly and through insurance brokers.
Honeycomb co-founder and CEO Itai Ben-Zakan said: “The new funding will be used to further improve the end-user experience, driving enhanced profitability to our broker partners, and broadening the type and size of policies offered.
“We plan to deepen our technological advantage with proprietary AI models leveraging unique first-party data and expand into new insurance markets, turning Honeycomb into a one-stop shop for everything related to commercial real-estate insurance in the US.”
Zeev Ventures founding partner Oren Zeev said: “Honeycomb is an example of an Insurtech company that solves a major problem in a huge market, thus allowing it to increase ARR [annual recurring revenue] at a fast pace and progress to operational profitability in a short time.
“I am happy with this opportunity to lead the current round, as the company’s unique technological advantage positions it well to become the market leader in their space.”
The investment in Honeycomb’s technology and staff expansion follows an investment from SiriusPoint, a Bermuda-based global insurer and reinsurer, in January 2022.
