Insuretech startup Dinghy scores with $1.2m funding round

Insuretech startup Dinghy has secured $1.2m (around £880k) in a new round of funding led by investment firm Balderton Capital.

The company, which pushed its on-demand freelancer insurance platform live this month, is aiming to tap into the UK’s growing self-employment arena.

Estimated to be the country’s fastest growing sector, there are currently around 2m freelancers in the UK and an estimated 11m working in the gig economy across Europe.

According to Dinghy, many sole traders are leaving their businesses exposed to unnecessary risk because they struggle to secure flexible equipment insurance and professional indemnity insurance.

Also involved in the investment round were industry angel investors and ReSolution.

With its platform now live and seven-figure funding in place, Dinghy said it expects its core market to comprise tech developers, designers and consultants.

The company was co-founded by entrepreneurs Edward Woodcock, Rob Hartley and Ben Wilks.

Edward Woodcock said: “As a former tech freelancer, my laptop was my workhorse.

“I’ve lost earnings from a broken laptop when it took the insurers five days to sort out the replacement.”

He continued: “With 24 hour replacement anywhere in the world, or immediate cash settlement once the claim is approved, I’m excited that we have closed that gap and can provide exactly what freelancers need.”

Rob Hartley commented: “At the end of a contract, freelancers often end up paying for insurance they don’t need, or cancelling their insurance and losing all the benefit of the insurance they just paid for, so throwing away all the cover they paid for.

“The traditional insurance model doesn’t provide the kind of flexible and responsive cover that freelancers need.”

Ben Wilks said of the investment: “We are delighted to have secured Balderton in our seed round, and their support has been phenomenal.

“We’re also thrilled to be backed by leading industry angels and to have partnered with one of the world’s best insurers to support our vision for better insurance for everyone, starting with freelancers in the UK. With a target market of 1m under-served professionals in the UK alone, the opportunity for an agile tech-led company speaks for itself.”

Balderton Capital partner Rob Moffat said: “The traditional insurance model just doesn’t provide the affordable and flexible cover that many freelancers need to fit their own flexible way of working.

“There is a huge opportunity for a company that offers Professional Indemnity and other policies on a ‘pay as you use’ model, which the Dinghy founders understand deeply through their unique combination of insurance and freelance experience.”

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