Total amount raised
$34.3 Millions
Latest funding date
1/1/2023
Location
LOOP has successfully raised $31 million over two funding rounds, including a $10 million Convertible Note and a $21 million Series A round. The company leverages AI-technology, big data, and telematics to offer more fairly priced insurance products.
Keep reading to explore the intricacies of LOOP's fundraising journey and the investors backing this innovative platform.
What Is LOOP?
Founded in December 2020, LOOP is based in Austin, Texas. The company was established by Carey Anne Nadeau and John Henry. LOOP employs between 51 and 100 people.
LOOP leverages AI-technology, big data, and telematics to offer fairly priced car insurance. The company focuses on equitable pricing based on driving habits and locations rather than traditional factors like credit scores or job titles.
As a Public Benefit Corporation, LOOP is dedicated to serving underserved communities. Their mission is to provide affordable and transparent insurance, ensuring respect and dignity for all members.
How Much Funding Has LOOP Raised?
- Seed Round
- Amount Raised: $3.3M
- Date: January 2021
- Lead Investors: Freestyle Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and develop its AI-driven insurance platform.
- Series A
- Amount Raised: $21M
- Date: September 2021
- Lead Investors: 01 Advisors, Foundry Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand the mission of providing equitable car insurance.
- Convertible Note
- Amount Raised: $10M
- Date: January 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop technology and enhance market presence.
Total Amount Raised: $34.3M. Current Valuation: Not publicly disclosed.
Key Investors
- 01 Advisors
- Details: 01 Advisors is a venture capital firm founded by former Twitter executives Dick Costolo and Adam Bain. They focus on leveraging their operational expertise to help startups scale.
- Investment Focus Areas: Technology, AI, Consumer Internet
- Notable Investments: Bird, Dapper Labs, Notion
- Foundry Group
- Details: Foundry Group is a venture capital firm that invests in early-stage technology companies. They are known for their strong founder network and hands-on approach.
- Investment Focus Areas: Software, Consumer Internet, IT
- Notable Investments: Fitbit, SendGrid, Zynga
- Freestyle Capital
- Details: Freestyle Capital is an early-stage venture capital firm that focuses on technology startups. They provide seed funding and strategic support to help companies grow.
- Investment Focus Areas: SaaS, Marketplaces, Fintech
- Notable Investments: Patreon, Intercom, BetterUp
- Concrete Rose Capital
- Details: Concrete Rose Capital is a venture capital firm that focuses on investing in diverse and underrepresented founders. They aim to create positive social impact through their investments.
- Investment Focus Areas: Social Impact, Diversity, Technology
- Notable Investments: Not publicly disclosed
- New Voices Fund
- Details: New Voices Fund is a venture capital firm dedicated to supporting women of color entrepreneurs. They provide funding and resources to help these founders succeed.
- Investment Focus Areas: Consumer Products, Beauty, Health
- Notable Investments: The Honey Pot Company, Mented Cosmetics
What's Next for LOOP?
LOOP is poised to capitalize on a massive opportunity by targeting underserved populations with its AI-driven, equitable car insurance. The company's innovative approach, which eschews traditional demographic factors in favor of driving behavior and data, positions it to serve a large, overlooked market. With a waitlist of over 30,000 potential customers, the demand for LOOP's services is evident.
Future fundraising opportunities seem promising, given the strong investor interest and strategic partnerships already in place. However, LOOP may face challenges in scaling its technology and operations to meet high demand. Additionally, regulatory hurdles and competition from traditional insurers could pose significant obstacles. Nonetheless, the company's mission and innovative model make it a strong contender for future growth and potential acquisitions.
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