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Gig economy insurance startup Zego has raised $150 million in funding led by DST Global and General Catalyst.
The funding, previously exclusively reported by Insider in February, gives the startup a unicorn valuation of $1.1 billion.
CEO Sten Saar described the capital injection as a “huge milestone” for the firm in a statement to Insider.
Founded in 2016, Zego provides flexible insurance products ranging from minute-to-minute to annual cover. The startup has been growing rapidly alongside the wider gig economy, serving drivers for delivery companies such as Deliveroo and Uber Eats. Two of the firm’s cofounders, Harry Franks and Sten Saar, previously worked for Deliveroo.
Saar added: “It is clear that the way people use vehicles is undoubtedly changing, and what’s become ever more apparent is that the traditional, rigid model of insurance is no longer fit for purpose.”
Venture capital investment into insurance startups hit record highs in 2020, according to CB Insights.
Zego’s round was competitive, with the startup receiving 18 term sheets for the deal, Insider understands.
The startup had previously raised $51 million from investors like Balderton Capital and Tom Stafford, a partner at DST Global. Others current backers include Latitude, Target Global, and Taavet Hinrikus, the cofounder of $3.5 billion money transfer app TransferWise.
Post-Brexit, the firm will be able to do the same in continental Europe having secured a broking licence in the Netherlands. Zego operates in Ireland, France, Belgium, Italy, and Spain.
Zego claims to have provided over 230 million hours of insurance protection to over 110,000 vehicles since it was founded. The firm plans to use its funding to expand globally.