Many tech startups are seeing a decline in business activity due to the COVID-19 outbreak. That’s not the case for Jenny Life, a Seattle life insurance startup that is experiencing an 800% spike in customer engagement since the novel coronavirus began spreading in the U.S.
Jenny Life today announced a $3.5 million investment round to help fuel growth and support the increase in demand over the past few months.
Founded in 2017 by insurance industry veterans Chirag Pancholi and Lief Larson, Jenny Life aims to help women and mothers apply for life insurance policies within minutes. The service differs from traditional sign-up processes — it does not require health exams or extensive paperwork.
“In this business climate, people are hungrier than ever for information about their financial security,” Pancholi said in a statement. “We’re improving the breadth, depth, and quality of our offerings to support the growing interest we’re seeing from families.”
Life insurance applications were up last month, Business Insider reported. Most policies likely cover deaths from COVID-19, NerdWallet noted.
Other startups supporting end-of-life processes are also seeing increased usage, including Seattle-based Tomorrow, which helps people create legal wills.
Pancholi previously worked in investment banking and held executive roles at Nextel and Asurion. He founded Wisemuv in 2009 and co-founded Engage.co in 2015. Larson is a long-time entrepreneur, founding Kiosk.com in 1999 and Sportzy in 2013. He also spent seven years at Workface in Seattle and helped Pancholi launch Engage.co.
CMFG Ventures, the investment arm of insurance company CUNA Mutual Group, participated in the Series A round, along with other undisclosed backers.
“JennyLife has made tremendous progress since its launch and is poised to become the most trusted source for helping families maintain financial stability should they endure life’s darkest moments,” Brian Kaas, president of CMFG Ventures and a JennyLife board member, said in a statement.
Jenny Life employs 10 people and expects to double headcount this year with the new funding. It has raised $5 million to date.
Assurance, another Seattle-area insurance tech startup, sold to Prudential for $2.35 billion last year. Funding to insurance tech companies reached record highs in 2019, Deloitte reported.
Source: Geek Wire