Auto insurance

YouSet Home and Auto Insurance Marketplace Raises $2.1M and Launches in Ontario

The Montreal startup is planting its feet in Ontario in preparation for a national launch.

Montreal insurance marketplace YouSet has secured C$2.1 million in pre-seed funding as it launches its digital offering in Ontario.

“We believe this investment from people with such considerable industry experience is recognition that our vision is the right one.”
-Xavier Freeman

The funding, which closed in December, came primarily from a group of angel investors, according to YouSet. The group is made up of Don Fox, former executive vice president at Intact; Neil Mitchell, former CEO of Marsh Canada; and Mike George, founder of Trisura. Other investors include Joe Canavan, director of Canavan Capital; Nicholas Bouchard, founder of DuProprio; as well as Michel Lozeau, president of Anges Québec.

YouSet co-founding CEO Xavier Freeman told BetaKit that the $2.1 million involves $1.6 million in equity.

Led by Freeman and Fellipe Monteiro (CTO), YouSet’s online platform connects consumers with multiple insurance companies to find the best home and auto insurance rates.

Customers purchasing insurance through YouSet can delegate post-purchase processes to the company, such as policy changes, renewals, and communications with the insurance company. YouSet claims a user base of over 75,000.

“Other marketplaces like comparison tools help users compare rates but then redirect them to an insurance company when it comes time to purchase their policy,” Freeman said. “This creates additional friction and impacts the shopping experience. Our approach leads to a better experience.

This pre-seed capital is for YouSet’s growth strategy with a focus on sales, according to the company. With roots in Quebec and its latest expansion in Ontario, YouSet said it also plans to launch across Canada.

Part of the investment will also go into recruitment, as YouSet said it is currently looking to fill positions in marketing and software engineering to bolster its team of 11 employees.

“We’ve been working on our vision of making the insurance buying process more efficient for years, and today’s news is an important milestone in our journey,” Freeman said. “We believe this investment from people with such considerable industry experience is recognition that our vision is the right one.”

RELATED: Financial Rate Comparison Platform Ratehub Receives “Major” Investment From Novacap

YouSet joins the insurance market space comprising incumbents and other new players. Other Canadian companies offering insurance marketplaces include Ratehub, which recently received a major investment from private equity firm Novacap.

Brizia, which focuses on commercial insurance, raised C$10.2m in Series A funding last year. Covera, whose platform finds annual insurance rates for clients, secured $1 million in its seed funding round in 2017.

Burlington-based Surex also offers comparison tools for auto insurance, home insurance, and other insurance products.

Featured image from YouSet website.