Published: Jun 12, 2019
Focus: Growth Capital
Maven has invested in Honcho Markets (honcho), a disruptive insurance platform. The funding round includes investment from the Maven VCTs, the North East Development Capital Fund, supported by the European Regional Development Fund, and the Finance Durham Fund.
honcho has developed an innovative app which provides consumers with a transparent, cost-effective and engaging way of buying car, home, contents, travel or pet insurance. Through honcho’s reverse auction marketplace, insurance companies bid to offer consumers their best price, allowing consumers to see how closely each bid matches what they want to pay and 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 third largest globally, 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.
In an initial funding round in 2018, honcho raised £850,000 to fund the app launch, securing £200,000 more than its target raise, to facilitate the platform build, development of mobile and web apps, Financial Conduct Authority (FCA) authorisation, and the launch of marketing campaigns.
The Maven funding will support the business as it launches the product nationally, adds new insurance product lines and makes significant enhancements to its platform. The investment will also support the creation of 10 jobs over the next 12 months.
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