Cox Invests in Auto Insurance Startup
Cox Enterprises, an Atlanta based media holding company, is investing in a California based startup created to make finding and getting auto insurance easier using its API platform.
Cox is the lead as one of several investors in Clearcover. It’s other investors are American Family Ventures, IA Capital Group, Light Bank and Hyde Park Angels. Silicon Valley Bank provided debt financing. Together, the Series B financing round produced $43 million total.
The founders of Clearcover are no strangers to the auto insurance business. Kyle Nakatsuji and Derek Brigham both formerly worked at American Family Insurance, which is one of the investors in Clearcover.
“It’s gratifying to see our customer-focused, technology-driven business model resonating with the market and we’re excited to partner with Cox Enterprises on our mission to provide millions of drivers across the US with better insurance experiences and lower prices,” said Nakatsuji, Clearcvoer CEO, in a statement.” “We’ll use the funding to further invest in our API platform, launch new states [it’s currently only available in California], integrate new distribution partners and hire more than fifty people across our Engineering, Data Science and Customer Advocate teams.”
Adds Cox Senior Director of Strategy and Corporate Development Spencer Boice, “Cox Enterprises is proud to take a leading role in accelerating and supporting innovation within the car insurance industry. With the rise of new digital platforms, drivers can now find better, non-traditional insurance options and Clearcover is positioned to make a huge impact in a roughly $250 billion market.”
Clearcover launched in 2018.