US: Atlanta-based insurtech and guest screening solution for the vacation and short-term rental market, Safely, has raised a further $8 million in funding.
The round was led by technology investment firm Highgate Technology Ventures with participation from growth firm LAGO Innovation Fund. Both firms are existing investors in Safely.
Founded in 2013, Safely provides insurance policies for rental properties that cover personal injury and damage to property contents and structures. The company also provides guest screening, by checking government records, criminal databases and other watchlists.
Safely’s solutions connect with more than 30 property management systems to automate the integration of insurance and screening.
Andrew Bate, founder and CEO of Safely, said: “Our mission at Safely is to protect homeowners when they rent their homes on Airbnb, Vrbo and Booking.com because they can only make money if they let internet strangers sleep in their beds and use their stuff.
“We built our insure-tech infrastructure before Covid and were able to take advantage of rapid growth in the short-term home rental markets. We spent much of this year building our own insurance platform as a Lloyd’s of London Coverholder, which gives us access to 80-plus countries and some amazing underwriters. And we process all of our claims in-house and now pay 90 per cent of claims in three business days,” he added.
Bate said that the company is now focused on growth, including expansion in Europe.
Raja Goel, principal at Highgate Technology Ventures, said: “Safely is a category-defining company that provides a vital solution to vacation rental homeowners and operators.
“Their long history serving a broad spectrum of clients speaks volumes about their ability to help their partners run more efficiently and profitably. With only one per cent of market share in the United States, Safely is uniquely positioned to expand globally, and we are excited to partner with the team to support their next phase of growth,” added Goel.
Since its founding in 2015, Safely has raised about $16 million in funding and another $4.5 million in venture debt and has insured more than four million nights. The company last secured funding 12 months ago when it raised $12 million in venture capital investment and debt to accelerate its market penetration in the United States.