Montréal-based insurtech startup YouSet has successfully raised $3.5 million CAD in seed funding. The company, which operates a digital insurance marketplace, plans to use this investment to introduce a new product that allows users to bundle insurance policies, making it easier for consumers to manage their coverage.
The seed round was entirely funded by angel investors through a simple agreement for future equity (SAFE). Notable contributors include previous investors from YouSet’s 2022 pre-seed round, such as former Intact executive vice-president Don Fox, former Marsh managing director Neil Mitchell, Canavan Capital principal Joe Canavan, and DuProprio founder Nicolas Bouchard. New investors include former Axa head of big data Jim Texier, former Aviva senior vice-president Phil Gibson, and serial entrepreneur Dan Robichaud.
Co-founder and CEO Xavier Freeman emphasized the strategic choice to partner with experienced angel investors who have a deep understanding of the insurance sector and the tech industry. This approach helped YouSet close the oversubscribed round efficiently, avoiding the need to engage with institutional investors at this stage.
Advertisement
Growth Amidst a Challenging Market
Despite a challenging fundraising environment, YouSet has demonstrated resilience, expanding its user base from 75,000 two years ago to 250,000 today. The company has also doubled its team size to 20 employees. Founded in 2017, YouSet is a licensed insurance broker offering a platform where consumers can compare auto, home, and renter insurance policies from over 50 distribution partners. The platform allows users to complete a questionnaire online and compare rates from major insurers in under four minutes, with potential savings of up to 30%.
Expanding Services and Market Reach
With the new funding, YouSet is set to expand its offerings, including a feature that lets users bundle policies from different insurers, such as Aviva, Intact, and Economical Insurance. The platform’s ability to attract high-quality customers makes it an attractive partner for established insurance companies. Revenue is generated through commissions on policies sold via the platform, which remains free for users.
Currently operating in Québec and Ontario, YouSet plans to expand into Alberta and British Columbia by the end of next year. The funding will also support the growth of the company’s sales, customer service, and marketing teams, as well as its network of distribution partners.
Freeman envisions YouSet becoming the go-to platform for insurance, helping consumers simplify their insurance needs while saving money.
