Spot is a rapidly growing direct-to-consumer insurance start-up that blends technology with a range of injury insurance plans. Spot most recently made headlines for raising $17.5 million in fundraising. They plan to pursue series A funding within the next nine months that would add additional policies to the mix.
- An idea: The idea for the company came from a conversation founder Maria Goy and Matt Randall had back in 2018. Randall is married to Goy’s best friend, and one night, they started talking about Goy’s job at the time, in insurance at New York Life, and how there needed to be a product that provided affordable insurance. That led to a discussion about how to also have healthcare that was accessible.
- Holistic approach: Spot’s business model takes a holistic approach by providing customized injury insurance policies through both direct-to-consumer and strategic partnerships with companies and organizations. “Every major market was disrupted by some change of distribution, like Netflix and Airbnb,” said Goy. “We are setting the foundation to drive change and the distribution of insurance.”
- Partnerships: Spot has grown 800% in policies from last year and 300% in partnerships, including bringing on Mutual of Omaha. The spot is the first start-up the insurance giant has invested in, and “having them alongside Maria is beyond a powerhouse team, to say the least,” Randall said.
- Availability: The company’s policies are available in 42 states via the DTC model and nationwide on group coverage, Goy said. The new funding round will be used to triple Spot’s team of 25, go after new partnerships and develop a go-to-market strategy. Randall also plans to raise a Series A round in the next nine months.
- Customer-oriented: “What Spot is doing for the underinsured and uninsured makes sense,” Mike McCormick, principal at GreatPoint Ventures added. “Maria and Matt are incredible people building an incredible company with growth and product-market fit. In terms of the partnership and direct-to-consumer models, they could build either one into a $10 billion company and both will work.”