Insurtech start-up Dinghy raises £885,000
A new, mobile-first, on-demand insurance provider for freelancers has launched after closing a successful seed funding round.
Dinghy has developed a bespoke technology platform which aims to save freelancers time and money when they are not working.
The platform, which has recently gone live, has closed an £850,000 seed funding round led by Balderton Capital, which was joined by industry angel investors and ReSolution.
Dinghy expects its core market to be made up of tech developers, designers and consultants. The product is designed to insure any freelancers, from creative consultants to freelance journalists, for their business risks and against equipment damage and theft.
Traditionally, buying and maintaining insurance is a dull and slow process that most freelancers want to put off as long as possible.
Dinghy has built an online solution from the ground-up with freelancers in mind so the process from quote to claim is as fast and hassle-free as possible.
Co-founder Edward Woodcock said: “As a former tech freelancer, my laptop was my workhorse. I’ve lost earnings from a broken laptop when it took the insurers five days to sort out the replacement.
“With 24 hour replacement anywhere in the world, or immediate cash settlement once the claim is approved, I’m excited that we have closed that gap and can provide exactly what freelancers need.”
Self-employment is the fastest growing sector of the economy with about 2 million people now working as freelancers in the UK and an estimated 11 million working in the gig economy across Europe.
Many of these sole traders struggle to secure the flexible equipment insurance, and the professional indemnity insurance their clients often require, and as a result are leaving themselves exposed to unnecessary risks to their business.
Fellow co-founder Rob Hartley added: "At the end of a contract, freelancers often end up paying for insurance they don’t need, or cancelling their insurance and losing all the benefit of the insurance they just paid for, so throwing away all the cover they paid for.
“The traditional insurance model doesn’t provide the kind of flexible and responsive cover that freelancers need."
Rob Moffat, a partner at Balderton Capital, said: "The traditional insurance model just doesn’t provide the affordable and flexible cover that many freelancers need to fit their own flexible way of working.
“There is a huge opportunity for a company that offers Professional Indemnity and other policies on a ‘pay as you use’ model, which the Dinghy founders understand deeply through their unique combination of insurance and freelance experience."