INSUBCONTINENT EXCLUSIVE:
Gabi, a startup built to help consumers save money on home and auto insurance, announced today that it has closed a $27 million Series B.The
company intends to use its new capital to rapidly expand its team and invest in its product
lots of capital, it has some notable, venture-backed competitors and its business model helped the company close its latest round
All that made the Gabi deal quite interesting
The startup has come quite a ways since then
That 2017-era investment came from SV Angel and A.Capital Ventures
Then, in early 2018, Gabi put together $9.5 million in a Series A led by Canvas Ventures
big deal for the young company
Mubadala Capital led the event, while prior investors Canvas and others took part
that the company declined to share any growth metrics
share notes on its own growth
Its service lets people upload their current policy, which Gabi uses to find cheaper policies for the customer that have similar levels of
coverage.If that customer buys a new policy, Gabi gets paid
According to Fichtner, Gabi gets paid again if that customer renews the policy
So, in a sense, Gabi generates recurring revenue
And the better it does at matching consumers with insurance that they buy, and then keep, the more money it can make
(This impact is heightened by the fact that most Gabi customers are existing insurance customers, it told A Technology News Room, meaning
that they tend to make for more lucrative sign-ups.)All that fits into the Series B when you consider time
Gabi is around three years old, Fichtner told A Technology News Room, meaning that its early customer cohorts have only had so much time to
could squeeze from its customers.More simply, the better its retention proved, the more valuable Gabi would be as a business
Which brings us back to its new round.Gabi raised its Series B, from which we can infer that its retention rates were at least pretty good
insurance re-ups seems to have made Gabi an attractive receptacle for venture dollars.The insurance gameAccording to Fichtner, Gabi works
Why? Fichtner left us with a figure that we have to share as it helps answer our question
Guess, if you will, how much money is paid out in the United States each year in insurance commissions? $64 billion, for personal
(non-corporate) insurance.According to the executive, commissions on such products can be as high as 13%
