Lemonade competitor, Hippo Enterprises closes $150million which augments its capital value to $1.5 billion. The Palo Alto, California-based startup, secured this funding with lead new investors Dragoneer and Ribbit Capital joined existing investors like Felicis Ventures and Iconiq Capital in the financing.
“In 2021, we’ll be ready to go public,” he said.
Hippo, which was valued at about $1 billion in a funding round last year, is preparing for a potential initial public offering, said Chief Executive Officer Assaf Wand. “It started 3 1/2 months ago when the world was really shut down,” Wand said, adding that investor pitches were harder via video. “It’s very difficult for me as a founder to intervene to read the room.”
Enough investors signed on, though, bringing the total capital raised to $359 million since Israeli-born entrepreneurs Wand and Eyal Navon started the company in 2015.
In some respects, the pandemic has helped Hippo’s business, especially homeowner insurance policies. “Because interest rates were so low, we see a surge of people that are refinancing their mortgage,” Wand said. “People are buying homes like crazy now. ‘Hippo is on track for more than $100 million of revenue in the next year, according to Wand. Hippo’s goal is to have “a clear path to profitability” by next year when it expects to be ready to go public, he said.
Hippo sells policies in 29 states, after working to get regulatory approval from those state insurance watchdogs.