Hippo insurance hits $ 5 billion in SPAC


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Zynga founder Mark Pincus, hippo founders Assaf Wand and Eyal Navon and LinkedIn co-founder Reid Hoffman (Getty, LinkedIn)

Zynga founder Mark Pincus, hippo founders Assaf Wand and Eyal Navon and LinkedIn co-founder Reid Hoffman (Getty, LinkedIn)

Launch of domestic insurance Hippopotamus recorded the highest overarching policy.

The six-year-old company is set to go public by merging with a blank check company backed by LinkedIn co-founder Reid Hoffman and Zynga founder Mark Pincus, the Wall Street Journal reported. SPAC, nicknamed Reinvent Technology Partners Z, valued Hippo at $ 5 billion – almost five times its valuation in July 2020.

The agreement includes a $ 550 million PIPE or private investment in a public entity from investors, including Dragoneer, home construction giant Lennar, Ribbit Capital and several unnamed mutual funds. The hippo will receive $ 1.2 billion in cash from the IPO.

Hippo, based in Palo Alto, California, was founded in 2015 by two Israeli entrepreneurs, CEO Assaf Wand and Eyal Navon. Its underwriting technology uses things like aerial photographs and building permits to assess the properties and conditions of a house. It offers services such as water sensors and burglar alarm systems.

“Our main principle is that the best claim is the one that will never happen,” Wand told the newspaper.

The hippo was previously valued at $ 1.5 billion, after an increase $ 150 million in July 2020. Four months later, it closed a $ 350 million wheel led by Japanese insurance giant Mitsui Sumitomo. At that time, it did not publish a new award.

The boom in the US housing market and low interest rates over the past year have supported insurance companies.

In July, the shares of Lemonade tripled on the first day of trading, strengthening their valuation at $ 3.8 billion.

Recently, the insurance company Rhino, which offers an alternative to security deposits, has concluded a $ 95 million round, which she said would be the last before it was published.

[WSJ] – EB Solomont


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