Post-COVID Investment Announcement: Betterview
June 12, 2020 | Scott Murphy
We’re pleased to announce that we have made our second investment into the Post-COVID Fund: Betterview. The company provides remote property inspection to property & casualty (P&C) insurers for underwriting purposes. While COVID made in-person property inspections impossible in most states, Betterview’s virtual SaaS offering accelerated.
AVG’s Post-COVID Fund will invest in promising businesses addressing the impacts of the virus creating a portfolio of ~20-30 such investments over the next 12-18 months. Click below to learn more, or read about our first Post-COVID Fund investment in Tembo Health.
Virtual Property Inspection for Insurers
Betterview offers a software platform for insurers to remotely assess and underwrite property risk. By leveraging deep learning and computer vision on third-party aerial imagery and data from public and private sources (e.g., building permits, assessor reports etc.), the company allows underwriters to automatically approve or reject properties rather than require in-person human judgment.
Betterview raised a convertible note from Guidewire Software, the leading software company to the P&C industry and whose CMO joined the company’s board. Other existing investors joined the round: ManchesterStory, Nationwide Ventures, EMC Insurance Companies, MaidenRe, and Winklevoss Capital.
What We Liked About the Deal
- Market. Betterview is tackling a large, recession-resistant market ripe for disruption. P&C inspection in the U.S. is a $2.6B annual market, and the service can’t be deferred whatever the state of the economy.
- Product-Market Fit. A virtual solution is cheaper, faster, and safer than in-person inspection. The post-COVID environment is accelerating adoption of virtual solutions by insurance carriers.
- Momentum. The company is executing at a high level, with ~20 active customers. They grew ARR significantly in 2019 and are well on track to double ARR in 2020.
- Founding Team. The two founders have a highly complementary mix of entrepreneurial and insurance loss control experience. Their success repositioning the company from a drone business to SaaS analytics speaks highly of their ability to execute.
- Runway. This round should sustain Betterview for over two years. Funds raised will be used to accelerate scaling and invested in sales, marketing, and expansion of platform functionality.