SureBright, an insurance-as-a-service provider based in Toronto, has announced that it has closed a pre-seed funding round for the amount of US$2.5 million (about $3.2 million).
The solution provided by the insurance and reinsurance company enables e-commerce merchants to sell retail insurance and warranty products in their own online stores, and the entire transaction for customers takes less than 15 minutes to complete. The SureBright team, which currently consists of 16 people, stated that it planned to utilize the cash to build its embedded insurance and warranty solution and hire further staff.
According to BetaKit’s report, the pre-seed round was led by Motivate Ventures, and it included participation from Panache Ventures, Plug and Play, Simplex Ventures, InsurTech Fund, and additional investors whose identities remain unknown.
Currently, the solution offered by SureBright is being utilized by three different Ecommerce website shopkeepers. SureBright CEO Manish Chauhan told the press with BetaKit that because Shopify is the bank’s starting point, there have always been plans of spreading to other e-commerce platforms. Chauhan said this even though Shopify is the industry’s basic foundation. The chief executive officer also mentioned that these plans were in the process of being developed and could become a reality by the end of the current fiscal quarter.
SureBright Chief Operating Officer Kai Jia stated, in response to a question regarding the participation of Motivate Ventures, that Motivate has prior knowledge funding in API-based financial technology companies.
Jia remarked that their expertise was a perfect match for what it was that we were undertaking.
After SureBright completes the pre-seed another round funding, one of Motivate’s investors will become the independent directors of SureBright.
According to the startup, 25 different retailers and three different fintech companies have already signed up to become consumers.
According to a research that was published by Gallagher Re earlier this month, insurtech funding, which had dropped down significantly in the first period of 2022, started gaining pace in the second quarter of that same year. It was reported that international market in the insurtech business reached $2.41 billion US dollars in the second quarter of 2022; however, it was also mentioned that this figure was still more than 50 percent lower than the amount invested in the first quarter of 2021.