Our Investment in LOOP
by Jaclyn Hester
“I love my car insurance company.” Said no one, ever. Today’s car insurance market is broken. Underwriting practices are irrelevant and discriminatory. Customer service and claims-processing are slow. Brands are outdated (and cheesy). The behemoths of the $256 billion auto insurance industry are overlooking major demographic and cultural shifts. Enter, LOOP.
LOOP is car insurance you’ll love, built for the 21st century. Powered by truly differentiated technology, LOOP is going after the opportunity to serve a massive, yet overlooked and undervalued population. Instead of underwriting policies based on demographic information like credit score, occupation, and education, LOOP’s approach is actually tied to driving. Leveraging real-time data and AI, LOOP measures driver performance, along with weather, traffic, and collision data, to price policies for customers. This results in more competitive rates for underserved populations like millennials, renters, and immigrants.
LOOP launched last month in Texas with a waitlist of over 30,000 drivers drawn to the idea of modern, fairly priced auto insurance. With its commitment to equity and community-building, LOOP resonates with a generation of consumers who think about values and personal connection when making a purchase decision. The company’s “digital everything” approach not only makes the customer experience fast and easy, but also has the potential to help customers drive more safely, which is good for all of us. LOOP is also a B Corp (like us!).
The company is headed by co-founders John Henry and Carey Anne Nadeau. John was previously co-founder and venture partner at Harlem Capital. He also spent time at VICE Media creating Hustle, a show about entrepreneurship. Carey Anne is an expert in urban economics and spatial analysis. Before LOOP, she held roles at MIT and The Brookings Institution. The diverse backgrounds of this duo bring the kind of unique perspective essential to industry disruption.
Our investment in LOOP is a beautiful example of our network-driven strategy and how we work with our partner funds. We were initially introduced to the team by one of our portfolio CEOs, Craig Lewis (Gig Wage), when LOOP was raising its seed round. It was too early for us at that point (we typically invest at Series A, sometimes later), so we introduced them to Dave Samuel at our partner fund, Freestyle, who had recently mentioned an insurance thesis. Freestyle led the seed round and was joined by another Foundry partner fund, Concrete Rose. We kept a close eye on LOOP and let Dave know of our interest in the next round. When the time was right, we teamed up with Adam Bain and Dick Costolo at our partner fund, 01 Advisors, to co-lead the round. One company, three great Foundry partner funds working alongside us.
LOOP’s mission is to use technology to create equitable insurance for all, and we couldn’t be more thrilled to be along for the ride (pun intended). You can read more about LOOP here and get a quote here.