DETROIT--(BUSINESS WIRE)--CoverTree, a cutting-edge insurtech company specializing in manufactured home insurance solutions, announced today the successful completion of a $13 million Series A funding round led by Portage, with participation from investors such as AV8, Distributed Ventures, Detroit Venture Partners, Ludlow Ventures, Annox Capital, and more. To date, CoverTree has raised $23M to provide affordable insurance solutions to the growing manufactured housing economy. This Series A investment underscores the growing demand for modernized insurance products in the ever-evolving homeownership industry.
With over 22M Americans living in manufactured homes in the United States, and 11% of new single-family homes in 2022 being those of manufactured homes, CoverTree provides an affordable and high-tech offering to the growing market.
The funds raised will empower CoverTree to accelerate its mission of reshaping the home insurance sector and further build out an enterprise suite including the launch of Maple, a resident insurance management software for property managers, Bonsai a binding and underwriting platform for independent agents and lenders, and Sequoia an automated underwriting and quoting system for insurance book conversions. The Series A round marks a pivotal moment for the company, allowing it to expand its product offerings and strengthen its market presence within a historically overlooked market.
"With the continually changing homeownership industry, we are excited to continue expanding our services to the growing manufactured housing industry: we believe this is the future of how all Americans will live,” said Adarsh Rachmale, Co-Founder and CEO of CoverTree. "This investment is a testament to the value we bring to homeowners by redefining the insurance experience. With these funds, we will continue to innovate, expand our reach, and ultimately provide even more individuals with peace of mind through our high tech and accurate home insurance solutions."
Portage, known for its transformative investments in insurance technology, is enthusiastic about the partnership with CoverTree. Upon the completion of the investment, Portage’s Co-Founder and CEO, Adam Felesky, also joined the board.
"CoverTree's focused approach on manufactured home insurance aligns with our strategy of investing in companies that leverage technology to disrupt and enhance existing large niche markets," said Adam Felesky, Co-Founder and CEO at Portage. "With a growing market and the need for affordable housing greater than ever, we are confident in CoverTree's ability to drive positive change in the insurance landscape and are excited to support their journey."
“The next stage of growth adds a new dimension to the CoverTree technology platform with the launch of products combining Enterprise Software, underwriting, and AI. We have innovated with a unique abstraction layer integrated with our core systems that allows us to grow profitably in various distribution channels. Our distribution technology is able to reach manufactured home residents in relatively rural parts of the US without running marketing ads,” said Divyansh Sharma, CTO at CoverTree.
As the first digital insurance offering for manufactured homes, CoverTree's commitment to customer satisfaction has positioned the company as a leading insurtech, setting new standards for transparency, simplicity, and personalization in this category. The Series A funding will further empower CoverTree to invest in product development, scale its operations, and attract top talent to continue its mission of reimagining home insurance.
As CoverTree enters this exciting phase of growth, the company remains steadfast in its commitment to delivering unparalleled value to homeowners while reshaping the future of home insurance.
About CoverTree
CoverTree is an insurtech company headquartered in Detroit, Michigan. The company focuses on bringing digital distribution, automated underwriting, and data-driven pricing to specialty personal lines of insurance. CoverTree’s manufactured home product is available in Arizona, Michigan, Indiana, New Mexico, Ohio, Illinois, Tennessee, Texas, Arkansas, South Carolina, Kansas, Oklahoma, Georgia, and Alabama. Learn more at covertree.com.
About Portage
Portage is a global investment platform focused on FinTech and Financial Services with over US $2.5 Billion assets under management.
Our team partners with ambitious companies across all stages, through Portage Ventures and Portage Capital Solutions. We provide flexible capital and deliver a global network of investors, commercial partners, advisors, and value creation experts. With deep industry knowledge and entrepreneurial experience, Portage is committed to supporting the leaders who are reshaping financial services. Portage operates in the United States, Canada and Europe. Portage is a platform within Sagard, a global multi-strategy alternative asset management firm with over $25B under management. For more information, visit www.portageinvest.com.
