A few weeks ago, LOOP, a new car insurance company, launched in Texas.
And now, LOOP has announced it has closed on a $21 million Series A funding round co-led by Foundry Group and 01A, the fund of former Twitter CEO Dick Costolo and COO Adam Bain.
The round includes participation from existing investors in Freestyle VC, Blue Fog, Uprising Ventures, and Concrete Rose, and new strategic investment from New Voices Fund and Earn Your Leisure. Rap icon and avid angel investor Nas also participated.
The Series A comes just nine months after LOOP closed on a $3.25 million seed-stage round of funding led by Freestyle VC.
The support of the investors allows LOOP to “fiercely accelerate our growth” and expand its mission, John Henry, Co-Founder and Co-CEO said in a news release.
“We are building a completely modern architected insurance company, “ Carey Anne Nadeau, Co-Founder and CO-CEO said in a news release.
LOOP moved to Austin earlier this year. They have more than 30 employees and plan to be at more than 100 in the next six months and 1,000 within a year, according to a previous interview with Henry.
LOOP, a public benefit corp., known as a B-Corp., doesn’t use credit scores, occupation or education in its underwriting. Instead, the company measures how users drive, paired with crash, weather, and traffic data.
“The result has been more equitable and competitive pricing for millennials, renters, and immigrants who are often burdened by student loans and consumer debt and are disadvantaged by legacy models,” according to a news release.
This financing makes it one of the largest Series A rounds raised by a female founder or founder of color. LOOP plans to expand its coverage to an additional 10 states over the next 12 months.
