SEPTEMBER 30th // AUSTIN, TX — LOOP, the AI-powered car insurance company with a focus on more equitable insurance, announced today it has closed a $21M Series A financing, co-led by Foundry Group and 01A, the fund of former Twitter CEO Dick Costolo and COO Adam Bain. The round includes participation from existing investors in Freestyle VC, Blue Fog, Uprising Ventures, and Concrete Rose, and joined by strategic new investment from New Voices Fund and Earn Your Leisure. Rap icon and avid angel investor Nas also participated. This comes just 9 months after the close of LOOP’s $3.25M Series Seed financing.
"We couldn’t be more excited to have chosen, and been chosen by, Foundry and 01a. Foundry brings an incredibly rich history and powerful founder network. Dick and Adam at 01a are real-deal operators, having built companies to heights only few have seen. Together, their support gives us the ability to fiercely accelerate our growth and expansion of the mission.” says John Henry, Cofounder and Co-CEO at LOOP. “We are building a completely modern architected insurance company,” adds Carey Anne Nadeau, Cofounder and Co-CEO at LOOP, “ Our growth will provide fuel to our AI and the ability to provide more great drivers at a fair price.”
LOOP is the only auto product in the market today that has completely removed the use of demographics like credit score, occupation, and education in its underwriting; opting instead for measuring how users drive, paired with crash, weather, and traffic data. The result has been more equitable and competitive pricing for millennials, renters, and immigrants who are often burdened by student loans and consumer debt and are disadvantaged by legacy models. LOOP has received strong support, launching in Texas earlier this month to a waitlist of over 30,000.
“Powered by truly differentiated technology, LOOP is going after a huge opportunity to better serve a massive, yet overlooked and undervalued population. We fell in love with this mission-driven team and their ability to use AI to create a more equitable insurance product while building a next generation brand that actually resonates with consumers. As a network-driven firm, we are thrilled to co-lead this round with our partner fund, 01a, alongside participation from our other partner funds, Freestyle and Concrete Rose.” says Jaclyn Hester, Partner at Foundry. “It’s no wonder insurance today is broken — it is driven by elements that have nothing to do with how you drive. We are convinced that LOOP’s data-driven approach results in a better experience for customers because it’s more honest and transparent. There’s no question this is a much better way to create an insurance business that actually works for customers — and John and Carey Anne are precisely the type of entrepreneurs who can lead this much-needed change.” adds Adam Bain, Partner at 01 Advisors.
This financing makes it one of the largest Series A rounds raised by a female founder or founder of color. In addition, LOOP announced a $30M multi-year reinsurance in August, and debuted its flagship auto product in Texas. The Company plans to expand its coverage to an additional 10 states over the next 12 months.
LOOP is a Public-Benefit Corporation and Artificial Intelligence-powered insurance provider headquartered in Austin, Texas, founded with a mission to create fair insurance for all. For general inquiries, more information on LOOP, or to join the team, please visit ridewithloop.com.