Nice Insurance App Hedvig will expand its services after landing Series A funding. Obvious Ventures from San Francisco led the funding round, with participation from D-Ax.
High Stakes, High Potential
Participants in the round have committed themselves to seeing Hedvig through long term growth. It’s easy to see why – in just over a year, the startup has provided insurance to over 15000 Swedes and insure more than 10 BN SEK (935 M EUR) in property and contents.
The insurance provider plans to grow its products, services, and coverage area beyond Sweden. Funder D-Ax, part of the Axel Johnson Group, has an extensive customer eco-system that can support Hedvig’s growth.
“As always, we take a long-term perspective on our investment, and we look forward to supporting Hedvig in scaling their business significantly over the years to come for the benefit of consumers everywhere”, said Joakim Skarborg, Chairman of D-Ax.
We can attribute Hedvig’s success in part to its mission: to provide insurance that is there for the customer when they encounter unfortunate times. In recent history, industries reward insurance companies for denying coverage or offering confusing plans that effectively make coverage inaccessible.
Hedvig would like its services to reflect the roots of insurance agreements. The first insurance plans were communal savings that would provide for community members who came under hard times. Many factors have driven the industry dangerously far towards maximizing profit for companies. Hedvig believes there’s another way.
The company generates revenue through service fees attached to its products, but is committed to paying modest salaries to employees. At the end of the year, the insurance startup donates excess revenue to a charity.
“Hedvig is on a mission to create the world’s most remarkable insurance experience by empowering nice and honest behavior. For too long the insurance industry has been rewarded for making their service hard to use, confusing and unfriendly. Hedvig is here to change that. With our new investors we’re more convinced than ever that we can bring our nice insurance to an extremely wide audience,” said CEO and Co-Founder Lucas Carlsen.