NEW YORK — Coverdash, a startup offering insurance to small and mid-sized businesses, has landed $13.5 million in Series A funding. This financing comes within one calendar year of Coverdash’s oversubscribed Seed round, bringing the company’s total funding to $16 million to date. The Series A round was led by Nyca Partners, joining existing investors including Bling Capital, AXIS Digital Ventures, Tokio Marine Future Fund, Expansion VC, Cameron Ventures and others. The latest financing will be used to further expand Coverdash’s embedded partner network, grow its internal team and broaden its insurance carrier panel.
Founded in 2022, Coverdash offers a full suite of commercial insurance products for all startups and SMBs across the U.S., allowing them to purchase business insurance within seconds from the places they trust most. Coverdash’s embedded technology enables partners from any industry to easily offer insurance to existing customers with a single line of code. The technology packages the necessary operational, compliance and financial elements to allow partners to deliver highly configurable insurance solutions within their own front-end environments. Within its first year of operations, Coverdash has surpassed its competitors by securing over 100 embedded distribution partnerships.
A staggering 75% of businesses in the U.S. are severely underinsured and 43% of small businesses are completely uninsured, exposing them to financial and legal risks. Coverdash is stepping in to better serve startups and SMBs in a landscape where major insurance providers have de-emphasized the importance of coverage for these businesses. Coverdash’s primary products are general liability, business owners policy, workers compensation, directors and officers liability, cyber insurance and professional liability. As the leading embedded insurance agency, Coverdash has the largest panel of trusted insurance carrier relationships, enabling customers to save 30-40% on business insurance costs.
“We’re not just making insurance accessible and straightforward for business owners nationwide, we’re acting as their virtual risk management arm,” said Ralph Betesh, Co-Founder and CEO of Coverdash. “Coverdash goes beyond coverage – we offer startups and SMBs the support they need, especially in today’s challenging landscape when navigating the complexities of insurance has never been more vital. Coverdash is dedicated to empowering both our partners and our customers with these capabilities.”
Coverdash’s growing embedded partner network includes various providers who serve or transact with businesses including leading payroll providers, POS providers, banks, lenders and vertical SaaS platforms. By integrating Coverdash’s single line of code, these partners can swiftly offer business insurance through their own platforms to their existing customers within 24-48 hours. Moreover, Coverdash leverages its proprietary embedded playbook to enhance in-platform user engagement by mapping company milestones with insurance purchase triggers. This ensures that embedded partners can continuously support their customers’ evolving businesses by offering the right insurance product exactly when it’s needed, thereby eliminating any gaps in coverage. Alongside helping partners create ancillary revenue, Coverdash also boosts customer retention rates, thereby increasing partners’ overall customer lifetime value (LTV) by offering insurance as a supplementary product.
“Coverdash’s embedded model drives best-in-class unit economics, rejecting reliance on paid acquisition strategies, creating tremendous organic growth and momentum,” said Stephanie Khoo, Partner at Nyca. “Giving SMB service providers – payroll, payments, lending, website creation, HR, etc – the ability to offer their customers seamless access to business insurance allows them to deepen their client relationships while adding a heretofore untapped revenue stream.”
