Start-up bicycle insurer Laka announces $4.7m funding round

UK-based bicycle insurer Laka has announced a $4.7m funding round led by the venture capital firms LocalGlobe and Creandum.

Yes VC, the venture fund founded by Caterina Fake, co-founder of Flickr and Jyri Engestrom, co-founder of Jaiku and Ditto, and angel investors Nick Evans and Oren Peleg have also participated in this round, amongst others.

Launched in 2018, Laka covers bicycles and related equipment against theft or damage. Its alternative community-based insurance model means that the customers work as a community to share the cost of claims.

Remus Brett, Partner at LocalGlobe, commented: “The beauty of Laka is it returns insurance to its pure, mutual heritage. Laka’s members and their shared interests incentivise positive behaviour which in turn benefits the entire community. These principles are over 300 years old, the difference being technology and increasing consumer awareness that traditional insurance models, with complex clauses, excesses and a painful claims process are fundamentally broken.”

Carl Fritjofsson, partner at Creandum, said: “The word disruption is used all too often in the world of entrepreneurship, but with Laka it actually fits very well. This is a fundamentally unique and different approach that turns the old business model of insurers upside down. Laka truly improves the user experience ten times as well as lowers costs for its policyholders, all while providing a fair and transparent insurance coverage. What’s not to love?”

Laka said the investment would help the company continue its growth and finance its expansion across Europe. Its European HQ will be in the Netherlands, where Laka will launch this year.

It will also use the funds to build out its product set to include a recovery and health product designed to cater for cyclists who have experienced injury or accident.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

​​​​Argo Group to Sell Trident Public Risk Solutions to Paragon Insurance Holdings
US storms and global floods cause $3bn+ in economic cost during January
ILS Capital's reinsurer Prospero Re assigned financial strength rating by KBRA
ARPC’s 2020 retrocession programme renewed for 2020
HDI Group snaps up cyber specialist Perseus
Insurtech Openly expands into Tennessee
Chubb’s CEO Greenberg reports positive momentum in 2019 results

Don't miss our insurtech email newsletter - sign up today