Direct Home Insurer Kin Raises $50M in Series E Financing

Direct-to-consumer homeowners insurer Kin said it has raised an oversubscribed $50 million Series E financing, at a pre-money valuation of $2 billion.

The digital insurer also closed on a $200 million debt facility, $145 million of which was used to repay an existing debt facility. The debt and equity financings together result in $105 million of incremental capital for the company to fuel growth, fund the launch of an additional reciprocal exchange, and enable investment in new products.

Founded in 2016, Kin operates in 13 states—Alabama, Arizona, California, Colorado, Florida, Georgia, Louisiana, Mississippi, Missouri, South Carolina, Tennessee, Texas, and Virginia. It has $600 million of in-force premiums and covers $100 billion in insured property values.

“Insurance is a critical safety net, but it’s disappearing just when people need it most,” said Kin Founder and CEO Sean Harper. “Our unique use of data and expert analysis enable us to better assess risk profiles of specific homes and offer customized protection. We’ll use this funding round to expand in markets most affected by natural disasters in a way that’s sustainable, scalable, and customer-focused.”

Kin said many homeowners in high-risk states such as California, Florida, and Texas have been left without options as traditional insurers change risk profiles in response to catastrophe losses. The insurer’s direct-to-consumer model, proprietary technology, and data analysis techniques enables it to accurately assess and fairly price risk, it said.

The lead investors in the Series E round are QED Investors and Activate Capital, with participation from other new and returning investors. The debt financing is led by Wellington Management. The Series E brings the total primary equity raised to $286M, and nearly doubles Kin’s previous $1.1 billion valuation.

Topics Carriers Homeowners