Maven funds invest in honcho
Maven has invested in North East-headquartered Honcho Markets (honcho), a disruptive car insurance platform. Maven co-invested alongside the North East Development Capital Fund, supported by the European Regional Development Fund and the Finance Durham Fund, established by Durham County Council.
honcho has developed an innovative app which provides consumers with a transparent, cost-effective and engaging way of buying insurance products and services. Through honcho’s reverse auction marketplace, insurance companies bid to offer consumers their best price, consumers can then see how closely each bid matches what they want to pay and then pick the bid that suits them best. This process ensures a highly competitive quote and puts the customers' interests at the heart of the transaction.
The UK consumer insurance industry is the largest in Europe and the third largest in the world, with over 900 authorised general insurance companies in the UK alone. The market is currently dominated by price comparison websites which are increasingly being scrutinised for a lack of transparency.
The funding from Maven will support the business as it enters its next phase of development to launch the product nationally, add new insurance product lines and make significant enhancements to its platform. The investment will also support the creation of 10 jobs over the next 12 months.
honcho raised £850,000 to fund its app launch last year, securing £200,000 more than it intended to raise, and closing the investment window nine days early. The initial funding round facilitated the platform build, development of mobile and web apps, Financial Conduct Authority (FCA) authorisation, and the launch of marketing campaigns.
Car insurance is becoming increasingly expensive and honcho’s proposition will provide an engaging and more cost-efficient way of purchasing insurance products via its unique reverse auction marketplace. Gavin has assembled an exceptional team and the interest honcho has already received has been very encouraging.
Alex Marsh, Investment Manager at Maven
The past year has been an incredible journey for honcho and we are delighted to be able to today announce this significant investment to enable our next phase of growth. The team at Maven have been supportive and engaged partners and we are encouraged by their continued belief in the honcho proposition, and in our ability to disrupt what is becoming an ever more distrusted market.
Gavin Sewell, CEO at honcho