“Expediting SMB Insurance: Coverdash Unites Top Carriers for Instant Coverage”

In the fast-paced world of startup companies, making decisions can often be a difficult task. This was the case for CEO Ralph Betesh when his company, Coverdash, a commercial insurance provider for startups, experienced a significant increase in their number of embedded distribution partners in the past year. The number had more than tripled, reaching over 100 partners, and Betesh had a choice to make.

He could either continue on the path towards profitability, or take on a venture capital round. The latter option wasn’t entirely necessary for the already successful insurance provider, but it would allow for faster onboarding of larger partners.

“More big partners kept coming and closing with us, pushing to get on our roadmap,” Betesh explained.

The decision wasn’t easy, especially considering the current state of the investment market. As Betesh recalled, “everyone told us this might be the most challenging environment for a Series A in the last four years.” On top of that, Coverdash had only recently raised capital, with their last profile on TechCrunch in early 2023 when they secured $2.5 million in seed funding. Back then, they only had 35 distribution partners.

In 2022, Betesh co-founded Coverdash with David Vainer and Avery Rubin. The insurance company offers small businesses, e-commerce merchants, and freelancers the ability to purchase various insurance policies, including business owner’s policies, cyber insurance, and worker’s compensation.

One of the key components of Coverdash’s success is its distribution partners, which include payroll providers, banks, and vertical SaaS platforms. These partners embed Coverdash’s insurance tool into their platforms, making it easy for businesses to get coverage in just a few minutes by answering a few simple questions and selecting a policy.

“Our focus was bringing the embedded customer, or direct consumer customer, options from the biggest names in insurance and allowing you to choose what’s best for you,” Betesh said.

The company’s unique approach also involves offering multiple options from various insurance carriers, which helps them provide better pricing and coverage to their customers. This approach proved to be successful, with Betesh noting a significant increase in revenue and partnerships in the past year.

Coverdash’s latest addition to their portfolio is a management liability product specifically for startups with a board or are in the process of fundraising. This product has specific requirements, such as having liability insurance for board directors and company officers, which has resulted in some major clients for Coverdash.

With an ever-growing employee workforce, a tripling of embedded distribution partnerships, and a 30% month-over-month growth in customers, Betesh and his co-founders decided to take the venture capital route. They raised an impressive $13.5 million in Series A funding, led by new investor Nyca Partners and joined by existing investors, including Bling Capital, AXIS Digital Ventures, Tokio Marine Future Fund, Expansion VC, and Cameron Ventures.

“We were ready for it,” Betesh stated. “It all kind of fell into place really quickly, and in over two weeks, we had offers from multiple firms. We were really fortunate.”

Coverdash’s success is a testament to their hard work and dedication to providing innovative and convenient insurance options for their customers. As Betesh mentioned, their focus on profitability from the very beginning sets them apart from other companies and played a significant role in securing their latest round of funding.