Flock raises $17M led by Social Capital to reinvent insurance for connected vehicles
London, UK — Flock has raised $17M in Series A funding to supercharge its expansion into new geographies and product lines. This funding round marks a major milestone in building a global, fully digital insurance company for connected and autonomous vehicles.
The funding round was led by Social Capital, a leading Californian investment firm run by Chamath Palihapitiya, renowned tech investor, Chairman of Virgin Galactic, and an early backer of Slack, Tesla, and Bitcoin. Flock’s existing investors Anthemis and Dig Ventures also participated. This round brings Flock’s total funding to $22M.
Justin Saslaw (Social Capital’s Fintech Partner) will be joining Flock’s Board of Directors, alongside Ross Mason (Founder of Dig Ventures & MuleSoft, which was acquired by Salesforce in 2018).
Commenting on the news, Chamath Palihapitiya, CEO of Social Capital said:
“Flock is bridging the gap between today’s insurance industry and tomorrow’s transportation realities. By using real-time data to truly understand vehicle risk, Flock is meeting the demands of our rapidly evolving, hyper-connected world. Flock has the potential to help unlock and enable a truly autonomous world, and even save lives. We’re excited to be a part of their journey.”
How Flock is reinventing insurance
Flock provides usage-based insurance for fleets of commercial vehicles, including drones, cars, and vans.
In contrast to traditional annual policies, which are restrictive and inaccurately priced, Flock provides digital products that are fully flexible (bought and adjusted in minutes) and fairly priced (based on real-time risk).
This is made possible by Flock’s proprietary risk engine, which ingests huge amounts of real-time data such as vehicle sensor and location data, hyperlocal weather, traffic conditions, and accident data, to accurately quantify risks on a per-second basis.
Alongside an insurance policy, Flock provides its customers with free insights into how they can reduce their risks (for example, by highlighting their most high-risk drivers and routes). When customers improve their safety, Flock rewards them with significantly cheaper prices; some Flock fleet customers are now saving more than 25% on their premiums.
Flock’s journey so far
Flock launched the world’s first ‘pay as you fly’ drone insurance app in 2018. Flock grew its drone book to include more than 35% of the UK commercial drone market, currently insuring thousands of commercial drone operators globally, including pilots flying for the BBC, Netflix, and medical delivery flights for the NHS.
In 2020, Flock expanded into the rapidly evolving world of commercial motor fleets, launching the world’s first real-time insurance product for car rental platforms, courier companies, and corporate fleets. In its first year, commercial fleet revenues have grown 38x and Flock counts Jaguar Land Rover and Virtuo, Europe’s leading on-demand car rental app, among its flagship fleet customers.
Flock’s mission: to make the world a safer, smarter place
Commenting on the fundraise, Ed Leon Klinger, CEO of Flock said:
“Transportation is changing faster than ever, but the traditional insurance industry can’t keep up! The proliferation of electric cars, new business models such as ridesharing, and the emergence of autonomous vehicles pose huge challenges that traditional insurers just aren’t equipped for.
“Modern fleets need an equally modern insurance company that moves as fast as they do. Commercial motor insurance is a $160Bn market, crying out for disruption. The opportunity ahead of us is enormous.
“Everything we do is led by our mission to make the world a smarter, safer place. We strongly believe that the insurance company of the future won’t just pay claims; it will actively help its customers avoid them in the first place. That’s the future we’re building at Flock. We’re delighted that Social Capital has decided to support us, and join us for the ride!”.