Freelancer insurance startup Dinghy lands $1.2 mln

UK-based Dinghy, an on-demand insurance provider for freelancers, has raised $1.2 million in funding. Balderton Capital led the round.

PRESS RELEASE

Dinghy is a new mobile-first, on-demand insurance provider for freelance professionals. Using their bespoke technology platform, Dinghy’s hassle-free and flexible insurance adapts to the freelancer’s lifestyle; for the first time, freelancers save money when they are not working yet keep the full protection of their insurance.

Dinghy, which went live this week, has secured a $1.2M round of funding led by Balderton Capital and joined by industry angel investors and ReSolution.Dinghy expects its core market to be made up of tech developers, designers and consultants.

The product is designed to insure any freelancers from creative consultants to freelance journalists for their business risks and against equipment damage and theft.

Traditionally, buying and maintaining insurance is a dull and slow process that most freelancers want to put off as long as possible. Dinghy has built an online solution from the ground-up with freelancers in mind, so that the process from quote to claim is fast and hassle-free, with the ability to chat to experts:

Quotes: With only 8 questions Dinghy can provide quotes in 40 seconds and policies in 90 seconds
Policy changes: A fully online self-service area means customers can easily update their policy without having to waste billable time on a call listening to hold music
Claims: 24/7 claims reporting and lost or damaged equipment replaced within 24 hours (or instant cash settlement)
Dinghy’s co-founder 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. 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.”

Self-employment is the fastest growing sector of the economy with about 2 million people now working as freelancers in the UK, and an estimated 11 million working in the gig economy across Europe. But many of these sole traders struggle to secure the flexible equipment insurance, and the professional indemnity insurance their clients often require, and as a result are leaving themselves exposed to unnecessary risks to their business.

Dinghy’s co-founder Rob Hartley said: “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.”

Dinghy’s co-founder Ben Wilks said “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 1 million under-served professionals in the UK alone, the opportunity for an agile tech-led company speaks for itself.”

Rob Moffat, partner at Balderton Capital 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.”

About Dinghy
Dinghy is a new online insurance provider using cutting-edge technology to provide freelances with insurance that matches their own flexible working style. Policies will charge lower premiums when the policyholder is not working, but still provide the full cover of traditional insurance. Dinghy was founded by Ben Wilks, Edward Woodcock and Rob Hartley, who between them have worked in insurance and insurance tech for 39 years.

A truly online business, Dinghy’s staff and freelancers are based in London, Guildford, Manchester, Thailand and the Ukraine. Dinghy is an Appointed Representative of ReSolution Underwriting Partnerships and its principal underwriter is Beazley Syndicates at Lloyd’s.

About Balderton Capital
Balderton Capital is Europe’s largest early stage venture capital investor, focused on European technology companies at Series A. Based in London, the firm manages $2.6bn and invests in entrepreneurs building globally ambitious businesses. Balderton’s Partners and advisory team include the founders and operational leaders of multi-billion dollar companies including Business Objects, Dropbox, Uber and Autonomy. Previous investments include Betfair (FTSE: BET), Magic Pony (Twitter), NaturalMotion (Zynga), Sunrise (Microsoft) and Yoox Net-a-Porter (BIT: YNAP). Among Balderton’s current portfolio of 76 companies are: Aircall, Carwow, Citymapper, Contentful, GoCardless, The Hut Group, Kobalt Music, Nutmeg, Prodigy Finance, Recorded Future, Revolut, ROLI, SOPHiA Genetics, Talend (NASDAQ: TLND), Vestiaire Collective, and Vivino.