InsurTech startup Root Insurance is poised to raise $350m and, as a result, reach a $3.65bn valuation.
The Wall Street Journal reported that the Series E round will be led Coatue Management, the global investment management company, and DST Global, the investment company funding late-stage ventures.
While this is the first time these two have reportedly invested in the company, the other investors have all reportedly injected cash into the business before. The other investors included the investment firm Tiger Global Management, which invested $100m into the US payments company Stripe in January 2019.
Root Insurance’s technology uses drivers’ smartphone to gauge how well they drive, using the data to determine if they are safe drivers or not. This in turn determines the price of their insurance.