Dinghy, a new London startup offering flexible insurance to freelance professionals, has raised $1.2m in a Seed round led by Balderton Capital.
The round also drew participation from angel investors and ReSolution.
Dinghy’s co-founder Edward Woodcock commented on why he decided to launch the business: “As a former tech freelancer, my laptop was my workhorse. I’ve lost earnings from a broken laptop when it took the insurers five days to sort out the replacement.
“With 24 hour replacement anywhere in the world, or immediate cash settlement once the claim is approved, I’m excited that we have closed that gap and can provide exactly what freelancers need.”
The news comes as approximately 2 million people in the UK are registered as freelance workers, with an estimated 11 million working in the gig economy across Europe.
Rob Hartley, co-founder, added: “At the end of a contract, freelancers often end up paying for insurance they don’t need, or cancelling their insurance and losing all the benefit of the insurance they just paid for, so throwing away all the cover they paid for. The traditional insurance model doesn’t provide the kind of flexible and responsive cover that freelancers need.”
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Ben Wilks, also a co-founder, said he the team was delighted to have secured Balderton as an investor.
“Their support has been phenomenal,” he noted, adding: “We’re also thrilled to be backed by leading industry angels and to have partnered with one of the world’s best insurers to support our vision for better insurance for everyone, starting with freelancers in the UK. With a target market of 1 million under-served professionals in the UK alone, the opportunity for an agile tech-led company speaks for itself.”
Rob Moffat, partner at Balderton Capital, explained why he had decided to back the young company: “The traditional insurance model just doesn’t provide the affordable and flexible cover that many freelancers need to fit their own flexible way of working.
“There is a huge opportunity for a company that offers Professional Indemnity and other policies on a ‘pay as you use’ model, which the Dinghy founders understand deeply through their unique combination of insurance and freelance experience,” concluded Moffat.
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