Automation investment is growing as major financial holding company, Power Financial Corp, announced its $3.8 million investment seed funding in Canada’s first cloud-based human resources and benefits platform on Wednesday.
Toronto-based Collage, an insurance automation start-up that reportedly has global ambitions, got the venture capital through a firm called Diagram, which is mainly funded by Portag3 Ventures.
Portag3 Ventures, in turn, is entirely backed by Power Financial Corp and its subsidiaries like Great-West Life.
Collage offers its software for free, making commissions off insurance companies, and is registered as a broker, targeting small businesses.
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The company was launched in 2016 and said it’s using Canada as a testing ground for working with insurance companies and turning a profit.
The start-up says it wants to be cooperative rather than dismissive and plans on introducing products currently unavailable in North America.
Comparisons have been made between Collage and Zenefits, the American start-up that raised $500 million in 2015 before laying off half its staff in early February and being confronted with charges of insurance violations and fines.
Diagram, the route of investment, launched in January and plans on assisting Collage with its insurance experts.
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