Pouch Secures Seed Round Funding from ILS Capital
Investment gives Pouch more resources to speed its entry into the commercial auto insurance market
Pouch has closed a seed round of funding from ILS Capital, giving it access to a portfolio company ecosystem and expertise that has accelerated its launch. Pouch, which offers simple, no-hassle commercial auto insurance that rewards small businesses for safe driving, adds a new line of business to ILS Capital’s portfolio while ILS provides resources that allow Pouch to focus on growth.
As part of the investment, ILS Capital will provide Pouch with access to its portfolio of insurance companies to underwrite policies, access to distribution channels, and operational and development resources and expertise—all of which has saved Pouch significant time and money, prevented delays and trial and error, and allowed Pouch to launch in less than half the time it would have taken to assemble the necessary resources on its own.
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“This capital and our portfolio gives Pouch the freedom to focus on growing its business and a fast track to market,” said Tom Libassi, Co-Founder and Managing Partner at ILS Capital. “At the same time, Pouch is led by a team rich with proven experience that expands the knowledge and expertise in our portfolio. It also opens up access to the direct-to-business market and telematics, which are highly complementary to what we do. This investment reflects our confidence in Pouch’s leadership and our shared vision. We have every confidence that Pouch will take the ball and run.”
The investment will give Pouch all the advantages of a midsize insurance provider from day one. While it typically takes new insurance companies 18 months or more to assemble the services and expertise required to get off the ground, Pouch has launched in just eight months, leveraging the experience of its founders and the resources at its disposal at ILS Capital.
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The speed of Pouch’s launch translates to speed and flexibility for agents and policyholders. Pouch is able to serve customers, develop new products, and solve problems faster than the typical bureaucratic pace of insurance companies.
“Insurance presents more hurdles to entrepreneurs than just about any other industry. You not only have to raise capital, you also have to find an insurer to write the policies, not to mention all the regulatory approvals,” said Steve McKay, Founder and CEO of Pouch. “ILS Capital has given us everything we need to move as fast as possible to take advantage of the opportunities in commercial auto insurance. They helped us bring to market our fresh approach and rewards for safe driving so that we can immediately help businesses protect some of their most valuable assets.”
Aimed at contractors, landscapers, florists, and other small businesses that depend on a fleet of vehicles, Pouch offers free GPS tracking for every vehicle insured, helping small business owners better manage and protect one of their most valuable assets while earning discounted rates and other goodies. Pouch is now available in Illinois and will roll out to additional states in the coming months.