The Zego guide to spending $42 million
Written by Lydia Woodward
On the 18th of June 2019, we were thrilled to share the news of Zego’s $42million Series B investment with the world. You might have seen us in the Telegraph, on TechCrunch, or speaking live on Ireland’s Newstalk. But we haven’t yet shared the details of why we chose to raise this amount, or what this means for life at Zego.
So how are the Zegons going to spend the proceeds of one of Europe’s largest ever insurtech funding rounds?
1. Doubling our headcount
It’s one thing to have ambition, and another to have the Zegon-power to execute our mission. Extra funds mean that we can expand the team, making the workload manageable for current staff and boosting the resources we can spare to get started with entirely new projects.
Know anyone who’d like to take a fast-growing company global? We’re rocketing ahead with recruitment. Many roles in engineering, data, pricing and operations are on offer, but you can see them all here!
According to Crunchbase, we’re the hottest insurtech in the world right now, so don’t let anyone convince you financial services isn't cool.
2. Going global
In 2018, Zego landed in Spain and Ireland. We had a fantastic response - and to be honest, we weren’t surprised. Nobody in the UK likes their insurance to be expensive or complicated, so why would the rest of the world?!
Our mission is to become the world’s largest and best-loved insurance provider for enterprise, and the next step will be to bring Zego to a few more European countries. We want to mirror the success we’ve had in the UK with usage-based policies for gig economy workers and fleets, but we’re also excited by the prospect of working with new mobility companies around the world.
3. Building brand new insurance solutions
We made our name bringing pay-as-you-go work insurance to part-time delivery drivers in the gig economy. Now, Zego insures over a third of the UK’s food delivery market. As more people hear about our usage-based policies, the more demand we get from different industries.
It would be easy to lose focus at this stage, but we’re committed to working with new mobility and enterprise customers, cementing our status as market leaders within the space we know best. We’re listening to current customers’ demands for new vehicles or policy lengths to add, and building on the early success we’ve had with taxi fleets to cover other innovative types of transport.
4. Fine-tuning the tech platform
Sure, pay-as-you-go cover is pretty neat. And our mobile app is, too. But there’s much more we can do to deliver a world-class experience for our customers.
At Zego, we aim to build simple, flexible insurance solutions. We’ll be working hard to make sure that our customer experience is as seamless as it can be at every stage, from purchasing a policy to making a claim.
We’re also committed to developing policies which work just like our customers do, reflecting their true exposure to risk. Our analysts are keen to explore the full potential of telematics: granular data can inform ever-more personal pricing plans and offer actionable insights into reducing customers’ risk profiles.
5. Not all at once.
$42 million sounds like a whole lot of money. But when you’re a fast-growing tech company, it can disappear faster than you might expect.
Fortunately, our investment came accompanied by formidable financial expertise. Taavet Hinrikus of Transferwise fame, Ben Kaminski of lead investors Target Global and Tom Stafford of DST Global all joined Zego’s board. They’ve been on this ride before, and we’ll lean on their wisdom to make sure that Zego’s funds last until Series C.