Audit insurtech AuditCover has finished its latest seed round funding, with new investors deciding to back the company.
An insurance distribution platform, AuditCover combines the fundamentals of tax audit insurance with rapid data ingestion and modelling software to provide taxpayers with instant coverage for their professional fees when facing audits.
During the latest seed round funding led by Hunter Equity Group, a long list of strategic investors, including Greenlight Re and local investors Ron Lesh (BGL) and Guy Pearson (Ignition), decided to put their trust into the insurtech – closing $1.7 million.
AuditCover founder and CEO Gil Snir said the result of the recent seed round funding reflects the industry's appreciation for the significance of user experience in insurance distribution.
“Both tax and insurance are highly regulated and complex areas. Our mission is to remove the ambiguity and protect taxpayers from the growing risk of an audit, enquiry, or review,” Snir said. “We're living in an era where the tax office has edged far ahead of the average taxpayer in terms of data and technology capability. We think it's time to even up the playing field.”
As part of the recent raise, financial services legal expert Claire Wivell Plater has joined the AuditCover board, in addition to other professional boards that she is part of, such as Youi Insurance and Athena Home Loans.
Insurtech investment has ballooned in recent years, with over US$15.8 billion invested into insurtech start-ups through 2021, more than double the prior record of US$7.1 billion in 2020.
Additionally, more funding has been focusing on the early-stage ventures, with one in every three dollars going to seed stage investments like AuditCover. Last year, AuditCover's seed round funding, led by Insurtech Gateway Australia (IGA), boosted its credentials and placed it among the leading insurtech companies and founders.
Find out the top 10 insurtech companies in Australia in this article.
Aside from raising funds, AuditCover also recently secured insurance capacity from HDI Global Specialty SE in Australia.
In a statement, the Australian branch of the HDI Global Specialty SE said it was “keen to support tech-driven innovative companies in an effort to provide best products and services to our respective clients and expand our specialty offering in an under-served area such as tax audit insurance.”
