Johannesburg based insurtech startup InvestSure has raised an aggregate amount of USD 680K. The funding was raised from Hannover Re Africa subsidiaries Lireas Holdings, Compass Insure, and independent cape town based venture capital firm 4Di Capital.
The new round of funding will be channeled to grow the business in new markets, entailing broadening the reach of the offering with existing partners, expanding into new and offering the product on other trading platforms to reach a wider number of investors in South Africa.
“It is very rare that a completely new and relevant insurance product finds its way to market so successfully. Coupled with an innovative and seamless user experience and excellent, young team, we are excited to see that InvestSure is developing traction in the South African market,”said Valerie Hayter, managing director of Lireas Investment Holdings. He added that they are delighted to team up with 4Di and Compass Insure.
Anton van Vlaanderen, a parner with 4Di maintained that the insurtech was young but evidently with promising future prospects. He further stated that, “It is our purpose at 4Di to invest in local entrepreneurs building the new products of tomorrow, which could ultimately have a global impact. InvestSure has developed a completely unique offering on the world stage, and one which is highly topical and relevant given recent corporate scandals. Once again we are very pleased to co-invest together with Lireas and Hannover Re, who have demonstrated a strong commitment to innovation in the Insuretech sector.”
The latter were incubated by Compass Insure up until recently after they entered the market. Weetracker has learnt that Compass Insure financed for their seed funding.
The insurtech startup however reveal they earlier received external funding in the form of a grant from Bank of America Meryl Linch.
InvestSure, founded in 2017 is a tech company that uses its software to enable partner investment companies to sell insurance products to customers. The innovation is designed in a way that it protects shareholders from incurring any losses in share value caused by actual or perceived fraud committed by management.
Mid last year, the SA startup unveiled what it termed ‘world’s first’ insurance cover for investors via EasyEquities investor platform.The product protects innocent shareholders fom loss as a result of allegations of fraud by management.
InvestSure reveals that “product has since enjoyed seamless operational capability and has seen a significant spike in uptake of investors purchasing the insurance with their shares in the past six months.”
The product relevance has so far highlighted with shareholders suffering the consequence of management fraud in several high profile cases including MTN, EOH and the Resilient Group of companies. Investors who had the insurance were saved the pain of losses in the region.
Feature image : Shane Curran (Far left), Ignatious Nkwinika (Middle) and Mbulelo Mpofana (Middle right) – InvestSure co-founders.