London’s insurtech Collective Benefits has raised £6 million in a new funding round. The startup plans to further expand across Europe, double the team size, and add new products and services to its roster. To date, the firm has raised £9.3 million.
Founded in late 2019, Collective Benefits acts as the safety net for independent/gig economy/platform workers, and provides insurance and benefits including sick and injury pay and family and compassionate leave options. With the new funding, Collective Benefits is aiming to add public liability insurance and pensions to the list.
The startup, which provides coverage and benefits for more than 200,000 independent workers in over 20 countries, conducted a survey of over 10,000 drivers, riders, and couriers and unearthed some valuable data. They discovered that nearly one-third had no savings at all, and that only 58% had just £1,500 stored away (as compared to the national average of £6,767), a figure particularly vexing when only 4% of independent workers report having sick and/or injury pay coverage.
Collective Benefits is addressing this issue head-on and is working with gig economy platforms including TaskRabbit, Stuart, and Wolt.
Collective Benefits’ recent funding round was led by NFX, with all previous investors including Stride VC, Delin Ventures, Insurtech Gateway, and executives from Uber, Deliveroo, and Urban following on. As part of the deal NFX general partner Pete Flint OBE will be joining the board.
“Collective is a market leader that’s solving an as-yet unsolved problem - the missing safety net for independent workers - in a way that creates a win-win outcome for both independent workers themselves, and the platform companies they work with,” commented Flint.