Digital insurance startup Spot has raised $17.5m in funding, including $15m in equity and $2.5m in debt led by GreatPoint Ventures.
The round saw participation from Montage Ventures, Mutual of Omaha, MS&AD, and Silverton Partners. Principal at GreatPoint Ventures Mike McCormick will join Spot’s board. The company will use the new capital hiring, marketing and business development.
Spot offers month-to-month accidental injury coverage that begins at $25 each month, which can be used on its own or in conjunction with traditional health insurance. Plans cover the actual cost of medical bills at a maximum of $20,000 for each injury. Spot allows customers to sign up in just one minute for immediate coverage at any time, so they can get the treatment at any licensed physician, hospital, or urgent care clinic.
Spot provides customised injury insurance policies through strategic partnerships with companies and organizations, allowing partners’ customers and communities to easily purchase coverage when they sign up for activities or memberships.
It developed “on-the-mountain” coverage for skiers and snowboarders, which can be purchased along with a lift ticket, and “on-the-bike” coverage for members of cycling organizations. Spot’s partners include USA Cycling, Powder Mountain, USA BMX, National Ski Patrol, and athleteReg. Thousands of Americans are already covered by Spot, including some of the world’s top pro athletes, such as snowboarder Travis Rice, cyclist Ayesha McGowan, mountaineer Adrian Ballinger, skateboarder Monica Torres and skier Julian Carr.
Spot has grown 800% in policies from last year and 300% in partnerships, including bringing on Mutual of Omaha. The company’s policies are available in 42 states via the DTC model and nationwide on group coverage.
Spot CEO Matt Randall said, “Health insurance across America is broken and high medical costs are causing Americans to go into debt and even file for bankruptcy. Monthly premiums on health insurance are much higher than what the average American can afford, so Spot is rethinking insurance and offering a new alternative for today’s consumers while finding ways to help Americans live their lives without going broke. Our team is providing peace of mind for as little as $25 per month, and driving awareness of much-needed injury insurance coverage options.”
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