Spot, the InsurTech startup providing digital, on-demand injury insurance, on Wednesday (July 28) announced that it has landed $17.5 million in funding, including $15 million in equity and $2.5 million in debt. GreatPoint Ventures led the round, which also saw participation from Montage Ventures, Mutual of Omaha, MS&AD and Silverton Partners.
Mike McCormick, principal at GreatPoint Ventures, will join Spot’s board of directors. Spot will use the funding to expand its team, create new partnerships and increase marketing efforts.
As PYMNTS reported previously, Spot operates across 43 states in the U.S. Of its customer base, 55 percent have health insurance in place, while the rest use Spot as primary care. The company strives to build a digital-first insurance offering that complements traditional health insurance. Claims can be filed online or via mobile.
According to the company’s announcement, Spot created “on-the-mountain” coverage for skiers and snowboarders, which customers can buy along with a lift ticket, as well as “on-the-bike” coverage for cycling enthusiasts. Spot’s partners include USA Cycling, USA BMX, Powder Mountain, National Ski Patrol and athleteReg, among others.
Spot offers month-to-month accidental injury coverage that begins at $25 each month, which can be used on its own or in conjunction with traditional health insurance. Plans cover the actual cost of medical bills at a maximum of $20,000 for each injury.
“Health insurance across America is broken, and high medical costs are causing Americans to go into debt and even file for bankruptcy,” Spot Co-founder and CEO Matt Randall said in the announcement. “Monthly premiums on health insurance are much higher than what the average American can afford, so Spot is rethinking insurance and offering a new alternative for today’s consumers, while finding ways to help Americans live their lives without going broke. Our team is providing peace of mind for as little as $25 per month, and driving awareness of much-needed injury insurance coverage options.”