Small business insurance provider Apollo has closed a $13.5mn series A funding round that included investments from Liberty Mutual and specialty insurer Trisura Group.
The Toronto-based online platform, which also offers personal lines insurance, said the funding round was oversubscribed and exceeded its original $4mn target. Gravitas Securities served as the lead investor.
Apollo was launched in April 2019 and combines data and algorithms to offer quotes, collect payment and deliver policies. The company said that the capital raised would be used to accelerate the InsurTech’s growth strategy and further its ambition to become the “’everything store’ for small business and personal insurance”.
Commenting on the investment, Apollo’s founder and CEO Jeff McCann said: "We've created an entirely modern insurance purchasing experience — digital, instant, and paperless — in line with everything else in our daily lives."
"Purchasing insurance the traditional way is a costly and time-consuming burden for Canadian small business owners and individuals. Apollo is changing that."
News of the capital raise follows a report by Willis Re that said third quarter investments in InsurTech surged 63%, with the sector attracting $2.5bn in new capital in the quarter.
Analysts at Willis Re said that despite an abundance of investments made in earlier funding rounds and for more established ventures, InsurTechs have found it increasingly difficult to raise money when seeking series B and C financings.
