Honeycomb Insurance Secures $36 Million in Series B Funding to Expand AI-Driven Solutions

Honeycomb's co-founders ● From left to right - Itai Ben Zaken, CEO; Nimrod Sadot, CTO. ● Photo Credit: Yossi Zeliger

CHICAGO, May 7, 2024 (VSNewsNetwork.com) - Digital insurer Honeycomb has raised $36 million in a Series B funding round led by Zeev Ventures. This round also saw participation from new investors Arkin Holdings and Launchbay Capital, as well as continued support from existing investors such as Ibex Investors, Phoenix Insurance, and IT-Farm.

Honeycomb, known for its innovative use of AI-driven technology in the landlord insurance market, plans to use the funding to enhance its technological capabilities and expand its offerings in the U.S. insurance market. "The new funding will be used to further improve the end-user experience, driving enhanced profitability to our broker partners, and broadening the type and size of policies offered," said Itai Ben-Zakan, co-founder and CEO of Honeycomb. He added, "We plan to deepen our technological advantage with proprietary AI models leveraging unique first-party data and expand into new insurance markets, turning Honeycomb into a one-stop shop for everything related to commercial real-estate insurance in the U.S."

The funding arrives at a time when traditional insurers are retracting from certain markets due to increased risk, leaving gaps in coverage availability. Honeycomb’s approach allows for underwriting at the individual building level, offering more precise risk management and consistently better pricing for well-maintained properties, without imposing blanket limitations on property age or type.

Currently operating in sixteen of the largest states and covering approximately 60% of the U.S market, Honeycomb insures over $21 billion worth of real estate assets. With plans to triple this number in the next 12 months and double its staff from 90 to 180 employees within 18 months, Honeycomb is rapidly scaling its operations.

Oren Zeev, the Founding Partner at Zeev Ventures, expressed confidence in Honeycomb’s potential, stating, "Honeycomb is an example of an Insurtech company that solves a major problem in a huge market, thus allowing it to increase ARR at a fast pace and progress to operational profitability in a short time. I am happy with this opportunity to lead the current round, as the company’s unique technological advantage positions it well to become the market leader in their space."

For more details on Honeycomb’s services and its innovative insurance solutions, visit www.honeycombinsurance.com.

Source: Honeycomb via Newswire