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Kyle Nakatsuji, co-founder and CEO of Clearcover, said the company had raised its Series B with the aim to grow its team and continue building out its platform. It also aimed to grow its partnerships and increase its coverage.
FREMONT, CA: Clearcover, an AI-powered auto insurance provider, announced the closing of $50 million in Series C. The funding was led by Omers Ventures. Other participants in the funding were existing investors Cox Enterprises, IA Capital Group, and American Family Ventures. This Chicago-based startup had raised $43 million in Series B last January and the total raised fund touches $104.5 after this funding.
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Kyle Nakatsuji, co-founder and CEO of Clearcover, said the company had raised its Series B with the aim to grow its team and continue building out its platform. It also aimed to grow its partnerships and increase its coverage. With the present capital infusion, Clearcover will accelerate the expansion of its geographical footprint. The company also plans to increase its workforce, which is currently 130 employees. It aims to add another 50-100 people over the next year.
"The market is taking notice of how Clearcover is redesigning the model of running an insurance company in further service of customers," said Nakatsuji in a statement.
Clearcover, which presently has its presence in Arizona, Ohio, Utah, California, and Illinois, runs a lean operation by opting not to advertise widely. By doing this, the company is able to pass a significant amount of savings onto its customers. Besides this, the company has launched a mobile app to service their policies, which is being used by more than 90 percent of the policyholders. As a result of which the company saves at least 20 percent service costs than the average in the industry.
To promote customers to buy vehicles with advanced safety technologies, Clearcover builds in lower rates of policies for them. It also reassigns most policy management tasks to its mobile apps for Android and iOS. These apps let customers file claims digitally and offer features like a quick view ID card, which shows detail information of the insurance even when cellular service isn't available.
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