Coverdash, which offers insurance to small- and medium-sized businesses, has raised $13.5 million in a Series A round led by New York-based Nyca Partners. Existing investors Bling Capital (Miami Beach, Fla.), AXIS Digital Ventures, Tokio Marine Future Fund, Expansion VC (New York), Cameron Ventures and others participated. In its seed round last year, New York-headquartered Coverdash raised $2.5 million.
Founded in 2022, Coverdash fashions itself as an insurtech startup, using a powerful technology platform to enable easy deliver a wide range of commercial insurance products. Its platform incorporates operational, compliance and financial elements, allowing partners to configure suitable insurance products within their own front-end environments.
‘Beyond Coverage’
“We’re not just making insurance accessible and straightforward for business owners nationwide, we’re acting as their virtual risk management arm,” said Coverdash’s co-founder and CEO Ralph Betesh.
“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,” added Betesh, who spent many years as an investment banker at Piper Sandler and Scotiabank.
Betesh and his co-founder, David Vainer, worked together at Scotiabank before turning entrepreneurs. Vainer, who has a degree in statistics and quantitative modeling, has held investment banking positions at Societe General and Merrill Lynch. He serves as Coverdash’s chief operating officer.
Commercial Real Estate
MacKenzie Companies
Law
Nemphos Braue
Financial Services / Investment Firms
Chesapeake Corporate Advisors
Commercial Real Estate
Monday Properties
Venture Capital
Blue Delta Capital Partners
Internet / Technology
Foxtrot Media
Target Markets
On the business front, Coverdash targets three distinct sets of customers — an estimated 75% of U.S. businesses believed to be “severely underinsured,” 43% of small businesses that are uninsured, and startups. Last year, the company carved out special insurance products targeted at startups, providing coverage liabilities for the management team, including directors.
In its first year of operation, Coverdash said it secured over 100 “embedded” distribution partnerships that are key to successful rollouts of products. Its embedded partner network includes providers such as payroll providers, point-of-sale operators, banks, non-bank lenders and vertical SaaS platforms. Coverdash says its platform empowers this partner network with a single line of code, allowing them to use their own systems to swiftly offer their customers business insurance. The company claims up to 40% savings from its trusted insurance carrier relationships.
“Coverdash’s embedded model drives best-in-class unit economics, rejecting reliance on paid acquisition strategies, creating tremendous organic growth and momentum,” said Nyca partner Stephanie Khoo, a former Goldman Sachs executive. “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.”
