Insurtech Joshu has closed a $3.7 million seed funding round led by Blumberg Capital with participation from Engineering Capital, Correlation Ventures, Innovation Endeavors and Sure Ventures.
Menlo Park, California-based Joshu aims to help insurance carriers launch online distribution channels. The company offers a platform of digital tools that helps bring commercial insurance businesses quickly online, the company claims in a press release. Joshu also has an office in Tel Aviv which is its engineering function while its California headquarters is its marketing function.
Although Joshu Co-Founder and CEO Roy Mill would not share the valuation at which the round was raised, he did say that the firm will use the funding to hire a couple of more engineers and expand its company. This is also the company’s first fundraise.
“We want to sell the platform, build the platform, enhance it, and work with our early partners to launch their websites, to launch their online insurance selling channels,” Mill said.
The platform lets insurance professionals set up insurance products online like application forms, rating rules, complete quote and policy document generators and others. Joshu was founded in January 2020 by technology experts that have sold insurance online. The company is mostly focused on serving the U.S. although it does have a couple of prospects in East Asia and London, Mill said.
Blumberg Capital Managing Director Bruce Taragin said in a statement that the insurance industry has many opportunities for digital transformation to serve a larger customer segment.
“Joshu operates as a true partner with commercial insurance companies to offer a full suite of digital products and capabilities that insurance professionals need to personalize and optimize the user experience for their customers.”
Joshu will have about five employees at the end of the quarter but Mill would not share revenue metrics.
In related FinLedger coverage, insurtech executives and investors express that 2021 will be a year of evolution and innovation across the entire insurance industry.