We’ve been covering US-based insurtech startup FAYE since 2022 with its seed round and Series A round in 2023, and it looks like it’s continuing its success, announcing $31 million in Series B funding today. What’s driving this online insurance company to the fore?
Well, it seems to be about the way it combines travel insurance, assistance while away from home, and a range of financial solutions, all wrapped up in a comprehensive smartphone app. It could be argued that in the same way that Lemonade managed to reach millennials with a more attractive packaged insurance platform, FAYE is in a similar vein.
Co-founder and CEO Elad Shaffer told TechCrunch that part of the key to its continued growth has been its conservative approach to insurance payments.
“Wallet is the way we push claims instantly to your phone so you can use it like you use Apple Pay to pay for things. Suddenly it becomes your travel card of choice, where you can enjoy better foreign exchange rates, budget your trip, settle after your trip, etc. We really want to be your protector and companion when you travel.”
To this extent, FAYE offers 24/7 assistance, “real-time” trip monitoring and alerts about the country you are in, vaccine information, health mandates, access to remote doctors or in-hotel medical visits, as well as refunds and offers.
The company’s travel care is “designed to help you overcome travel obstacles and ensure your trip goes smoothly,” says Shaffer.
“Most Americans either don’t buy travel insurance or are simply not used to buying travel insurance… so I would still argue that we’re competing with traditional providers like Allianz Partners, or AIG,” he continued.
Other notable insurtech startups in this space include US-based Battleface, a travel insurance startup that offers integrated travel insurance products, and has raised $14 million to date.
FAYE’s $31 million Series B funding round was led by Portage, with participation from Lumir Ventures, alongside existing investors F2 Venture Capital, Viola Ventures, and Munich Re Ventures.