Neat raises €10M and marks the largest seed round ever in the embedded insurance industry
- Neat creates turnkey embedded insurance solutions for retailers and e-merchandisers. The start-up enables sellers to offer their customers innovative and tailor-made products to protect the goods and services sold.
- Its mission is to promote a more sustainable consumption and extend the life of products in order to reduce their environmental and social impact, while promoting repair and refurbishment rather than the purchase of new equipment.
Paris, 21st October 2022 Insurtech Neat, founded in May 2022 is leading an initial funding round of €10m from Octopus Ventures, New Alpha, Mundi Ventures, Founders Future and Business Angels to accelerate its development and take advantage of the strong growth of the embedded insurance segment.
Neat is an insurtech that enables retailers to offer embedded insurance products to their consumers. The insurtech operates in BtoBtoC and proposes a technological solution that extends the range of services, increases revenue and improves loyalty. With the support of the largest (re)insurers, Neat offers complete coverage of products and services sold with guarantees such as theft, breakage, loss, extended warranty, breakdown, or even cancellation without proof.
Neat designs and distributes white-label products, and embedded insurance. It is therefore perfectly integrated into the purchasing or in post sell process to revolutionise the insurance experience. For example, Neat proposes a lifetime warranty for household appliances by subscription. This unique product allows policyholders to protect all of their devices, household appliances, high tech and multimedia for only 15 euros a month. The warranty is valid for life and the devices are repaired or replaced within 48 hours.
By favoring repair and reconditioning, Neat pursues its mission of promoting more sustainable consumption of goods, in particular high-tech products to reduce their carbon footprint. To fully materialize its commitments, the company is a signatory to the Climate Act and has committed to carbon neutrality by 2024. Neat respects gender parity within its teams and promotes diversity.
The commission-based compensation model chosen by Neat allows its customers to incur no integration or subscription costs, so they can focus on their core business: sales. Neat is remunerated solely on the additional activity it brings and thus offers a model that aligns the interests of the distributor, the consumer and Neat.
The project, led by the two founders Fabien Cazes and Maximilien Dauzet, who have 30 years of experience in the insurance ecosystem, has already won over a hundred customers, including Floa Bank, Casino, Maeva, Ecox and Krys and grew more than +350% in the number of transactions over the last month.
This fundraising, led by leading international funds, will allow Neat to establish itself in a market that is experiencing very strong growth, and which has been dominated by traditional players until now. The embedded insurance segment is expected to grow by +31% in 2022 and reach nearly $600 billion worldwide in 2028. Today, Neat operates in the high tech, travel, mobility, health, and household appliances, both in e-commerce and in retail, and is aiming for growth of more than +200% in 2023. To do this, the start-up aims to grow internationally, to conquer new sectors and plans to triple in size by recruiting more than 40 people in the next 10 months.
Fabien Cazes and Maximilien Dauzet, cofounders, Neat declare: « Embedded insurance is a major innovation whose benefit is unique, both for the consumer and for distributors. It meets a need for sustainability and circularity and contributes to the fight against planned obsolescence. »
Aurélie Nicolas, Investment Director, New Alpha comments: « We are convinced that embedded insurance is a structuring innovation in the insurance industry. Neat distributes affinity insurance products that perfectly match consumer needs in a nearly invisible underwriting process. We were impressed with the traction and the quality of the execution. »
Neat is an Insurtech that dusts off the on-board insurance sector with innovative offers adapted to consumer needs. Thanks to its strong insurance expertise and technology, Neat enables distributors to offer simple, transparent products to their customers to protect the products and services they love. The start-up, which has more than 20 employees, is present in 5 sectors and aims to become the European leader in the sector.
About NewAlpha Asset Management
NewAlpha Asset Management has been an independent pioneer in investing in entrepreneurs in the financial industry since 2009. The company offers its institutional clients a wide range of products and services in absolute return and private equity strategies. In 2015, it launched the first French Venture Capital fund dedicated to European FinTechs and now manages a portfolio of 20 Fintechs, one of the largest in France.
A subsidiary of La Française (Crédit Mutuel Nord Europe group), NewAlpha Asset Management is subject to the regulations of the Autorité des Marchés Financiers (AMF).
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