South African insurtech startup InvestSure has raised ZAR9.6 million (US$685,000) in funding to broaden its offering and expand into new markets.
Launched in May of last year, InvestSure is an insurance offering for investors, protecting shareholders against losses in shares of listed companies caused by allegations of management misleading or deceiving shareholders.
The funding has been secured from Hannover Re Africa subsidiaries Lireas Holdings and Compass Insure, as well as venture capital firm 4Di Capital, following two years of incubation at Compass Insure, and totals ZAR9.6 million (US$685,000).
InvestSure said the direct investment from the specialist insurer was a big statement on the potential impact it could have in the market as it becomes available across a variety of platforms after its exclusive deal with Easy Equities expired.
The funding will be used for broadening the reach of the offering with existing partners, expanding into new markets, and offering the product on other trading platforms to reach a wider number of investors in South Africa.
“It is very rare that a completely new and relevant insurance product finds its way to market so successfully. Coupled with an innovative and seamless user experience and excellent, young team, we are excited to see that InvestSure is developing traction in the South African market. We are delighted to team up with 4Di and of course with our sister company Compass Insure which has the ultimate backing of Hannover Re, in taking InvestSure to the next level,” said Valerie Hayter, managing director of Lireas Investment Holdings.
Anton van Vlaanderen, partner at 4Di, said insurtech was a young but clearly emerging market, following closely on the heels of the fintech revolution, and one his company is paying close attention to.
“It is our purpose at 4Di to invest in local entrepreneurs building the new products of tomorrow, which could ultimately have a global impact. InvestSure has developed a completely unique offering on the world stage, and one which is highly topical and relevant given recent corporate scandals. Once again we are very pleased to co-invest together with Lireas and Hannover Re, who have demonstrated a strong commitment to innovation in the Insuretech sector,” he said.