Laka, a provider of bike insurance, has raised $4.7m in funding to help it expand across Europe.
The round was led by venture capital firms LocalGlobe and Creandum. Additional commitments came from Yes VC and angel backers including Rapha chairman Nick Evans and former Fitness First CEO Oren Pelege.
These new funds will help the company to grow across Europe, with Laka looking to make the Netherlands its European headquarters.
Further to this, Laka will use the capital to release new products for its platform. One of these is a recovery and health product which will support cyclists to have experienced an injury or accident.
UK-based Laka was founded in 2012 provides cyclists with a variety of cover for their bikes including theft, damage, travel, racing and for emergency taxi and rental bikes.
LocalGlobe partner Remus Brett said, “The beauty of Laka is it returns insurance to its pure, mutual heritage. Laka’s members and their shared interests incentivise positive behaviour which in turn benefits the entire community. These principles are over 300 years old, the difference being technology and increasing consumer awareness that traditional insurance models, with complex clauses, excesses and a painful claims process are fundamentally broken.”
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