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Los Angeles-based insurtech platform Counterpart has raised $30 million in new funding through a Series B round led by Dubai-based venture firm Vy Capital, Counterpart announced Tuesday.
Chicago-based Valor Equity Partners and Silicon Valley-based Felicis Ventures also invested in the round, which brings the L.A.-based startup’s total funding to $40 million.
Counterpart founder and CEO Tanner Hackett.
Founded in 2019, Counterpart’s platform provides small businesses with management liability insurance, which protects them from harassment or mismanagement claims by employees and board members. The startup’s proprietary software collects data about a company’s culture, regulatory compliance and financial data; it uses that information to determine a company’s risk and, via broker partnerships, works with them to find and mitigate potential liabilities.
“Companies don't realize that if they face a difficult harassment suit, it's game over,” Counterpart founder and CEO Tanner Hackett told dot.LA. “This is something that could [cost] hundreds of thousands of dollars, and not many businesses have that in their bank account these days.”
Counterpart’s services are particularly relevant after the COVID-19 pandemic upended the workforce, with many workers quitting or retired in droves, sometimes due in part to controversial workplace practices. Many insurance underwriters restricted coverage amid the pandemic, which hurt small businesses already facing supply chain and labor shortages.
Counterpart will use the funding to expand its broker partnerships, hire more people and grow its product line. It plans to expand its offerings this year to include crime and excess insurance.
“The long-term success in this company isn't just to build the next insurance business—it is to think about how we can fulfill the needs of small businesses,” Hackett said.
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