Neat, a Paris-based insurtech startup, has recently secured a significant funding round of €50 million ($55 million), with a twist – 40% of the funds are in debt. This innovative approach has allowed the company to raise a total of €30 million in equity and €20 million in debt. Neat’s business model is built around helping other companies sell insurance products to their customers, focusing on affinity insurance contracts linked to other services or products.
As an embedded insurance product, Neat partner retailers find insurance customers for the company, earning a commission on each policy sold without having to deal with the complexities of the insurance industry directly. On the other hand, Neat works with insurance and reinsurance companies, acting as a managing general agent and creating its own rates, products, and policies.
The key to Neat’s success is its full-stack approach, which allows the company to create a wide variety of insurance products tailored to specific customer needs. This modern approach enables Neat to price insurance products differently depending on the customer’s age, purpose of travel, or device type, among other factors.
Neat’s ecosystem is diverse, with the company operating across 10 verticals, including travel insurance for Pierre et Vacances, hearing aids insurance for Afflelou and Krys, and smartphone insurance for Floa. This breadth of offerings has allowed Neat to mutualize its risk and leverage technical synergies, resulting in over 1 million insurance products sold through its 1,500 distribution partners.
Leading the Series A round is Hedosophia, with Alma Mundi Ventures, ETFS, Athletico Ventures, and existing investors also participating. Neat’s innovative approach and growth potential have attracted significant investment, marking a milestone for the startup. With this funding, Neat plans to further develop its products and expand its network of distribution partners.
