Auto Insurance Tech Startup Drives Successful Funding Round

Want to share this story?

Columbus, Ohio based auto insurance tech startup Root announced it raised new funding to keep growing its app based service.

The startup announced it has raised $350 million in Series E funding from DST Global which lead the funding in this round. Supporting investors in this round includes Drive Capital, Tiger Global Management, Red Point Ventures, Scale Venture Partners and Ribbit Capital. So far, Root has raised $523 million in venture capital funding.

Root’s valuation has jumped to $3.65 billion. This valuation, plus the new funding, is propelled by continued growth in the startup, with $187 million in insurance premiums written in the first half of 2019, a growth of 824% over last year.

Root keeps its insurance affordable for customers by using web based technologies to service polices. Rates are set by how policy holders drive, without gimmicks, according to the company.

“We are thrilled that our success continues to attract leading investors who recognize the impact Root has already had on the industry and the opportunity still ahead,” said Root CEO and co-founder Alex Timm, to insurance industry trade Insurance Journal.

At this time, Root is processing insurance polices in states like California, Colorado, Georgia, Illinois, Ohio and Texas. It hopes to add even more states soon.