Flock, a London-based insurtech startup that provides usage-based insurance for fleets of commercial vehicles, has raised $17 million (approx £12.2 million) funding in Series A round. This round brings Flock’s total funding to $22 million (approx £15.8 million).
Who backed Flock?
Leading the round is Social Capital, a leading Californian investment firm run by Chamath Palihapitiya, Chairman of Virgin Galactic, and an early backer of Slack, Tesla, and Bitcoin. Existing investors including Anthemis and Dig Ventures also participated.
Commenting on the news, Chamath Palihapitiya, CEO of Social Capital said: “Flock is bridging the gap between today’s insurance industry and tomorrow’s transportation realities. By using real-time data to truly understand vehicle risk, Flock is meeting the demands of our rapidly evolving, hyper-connected world. Flock has the potential to help unlock and enable a truly autonomous world, and even save lives. We’re excited to be a part of their journey.”
As a part of the funding round, Justin Saslaw (Social Capital’s Fintech Partner) will be joining Flock’s Board of Directors, alongside Ross Mason (Founder of Dig Ventures & MuleSoft, which was acquired by Salesforce in 2018).
Data-driven approach
Founded by Antton Peña, and Ed Leon Klinger in 2015, the UK-based insurtech began in the commercial drone industry, where they launched Europe’s first pay-as-you-fly drone insurance product, using real-time data (like population density and wind speed) to quantify, insure, and mitigate drone flight risks.
Last year, the company expanded into commercial motor fleets, launching the world’s first real-time insurance product for car rental platforms, courier companies, and corporate fleets. In its first year, commercial fleet revenues have grown 38x.
Currently, Flock counts Jaguar Land Rover and Virtuo, Europe’s on-demand car rental app, among its flagship fleet customers.
Unlike traditional annual policies, Flock provides insurance with the help of a real-time, data-driven approach. Meaning, the company provides insurance to the connected vehicle on a per-second basis.
Flock uses its proprietary risk engine, which ingests large amounts of real-time data such as vehicle sensor and location data, hyperlocal weather, traffic conditions, and accident data, to accurately quantify risks on a per-second basis.
The digital products are fully flexible (bought and adjusted in minutes) and fairly priced (based on real-time risk).
Offers free insights
Besides the insurance policy, Flock provides its customers with free insights to reduce their risks. When customers improve their safety, Flock rewards them with significantly cheaper prices; some Flock fleet customers are now saving more than 25% on their premiums.
Commenting on the fundraise, Ed Leon Klinger, CEO of Flock said: “Transportation is changing faster than ever, but the traditional insurance industry can’t keep up! The proliferation of electric cars, new business models such as ridesharing, and the emergence of autonomous vehicles pose huge challenges that traditional insurers just aren’t equipped for.
“Modern fleets need an equally modern insurance company that moves as fast as they do. Commercial motor insurance is a $160B market, crying out for disruption. The opportunity ahead of us is enormous.
“Everything we do is led by our mission to make the world a smarter, safer place. We strongly believe that the insurance company of the future won’t just pay claims; it will actively help its customers avoid them in the first place. That’s the future we’re building at Flock. We’re delighted that Social Capital has decided to support us, and join us for the ride!”.