Source: Browne Jacobson
Browne Jacobson’s corporate team has advised on another InsurTech venture capital deal – assisting crowd insurance pioneer Laka on its £1.1m (US $1.5m) seed round.
The round was led by Tune Protect Group Berhad (Tune Protect), a financial holding company listed on the Malaysian Stock Exchange. Silicon Valley-based venture capital firm 500 Startups also participated, alongside new and existing angel investors from across the insurance industry.
Founded in 2017, Laka has developed a unique insurance model in which customers only pay for the true cost of cover. At the end of each month, the cost of claims is split fairly between customers, with the individual’s maximum premium capped at market rate for customer protection. Unlike traditional insurance companies, Laka only makes money when settling claims; a fairer business model that passes on savings to the customers. Fewer claims lead to lower costs. So far, Laka’s users have saved more than 80% compared to market prices. Laka currently focuses on insuring high-end bicycles in the UK, and following this investment is preparing to launch further lifestyle products in the next year.
The Browne Jacobson team was led by corporate technology partner Jon Snade, assisted by financial services lawyer David Henderson and corporate trainee David Hill. Snade, who is based at the firm’s London office, said:
“We are delighted to have advised on this high-profile, cross-border deal, which is a perfect demonstration of how large, traditional insurance players, venture capital firms and angel investors can partner successfully with disruptive, pioneering UK InsurTech companies in the same transaction. We are very proud that this deal will allow Laka to further extend its reach across the UK and eventually expand its disruptive insurance model into Asia.”
Co-founder of Laka, Tobias Taupitz, commented:
“I am very grateful for all the support we have received from Browne Jacobson in closing this deal, which is strategically important to us as we continue to scale and enter new markets. Jon and his team provided expert advice and were always available at short notice to guide us through the deal process.”
This deal represents the third major InsurTech investment that Browne Jacobson has advised on over recent months. Jon Snade led the teams which advised Digital Fineprint on its USD$2.7m investment round led by Pentech and which also advised Dinghy on its USD$1.2m seed funding deal which was led by venture capital firm Balderton Capital, with participation from industry angel investors and insurance investment company ReSolution.
Browne Jacobson has built a reputation for its innovative approach to delivering legal services to start ups following the launch of the Grow programme in 2017 and which is tailored specifically for high-growth companies at any stage of the start up journey. The firm works with almost 100 high-growth businesses across a broad range of sectors but notably in InsurTech and FinTech.