Follow-on investment will enable disruptive car insurance provider to further develop the platform and add new insurance product lines, supporting the creation of 10 jobs.
Maven Capital Partners has invested a further £750,000 in disruptive car insurance platform, Honcho Markets. The funding has been provided by Maven VCTs and Maven managed regional funds, the North East Development Capital Fund, supported by the European Regional Development Fund and the Finance Durham Fund, established by Durham County Council.
The follow-on investment will support the business as it enters its next phase of development to launch the product nationally, add new insurance product lines and make significant enhancements to its platform. The investment will also support the creation of 10 new jobs over the next 12 months, bringing the total staff numbers to 15.
honcho has developed an innovative platform which provides consumers with a transparent, cost-effective and engaging way of buying insurance products and services. Through honcho’s reverse auction marketplace, insurance companies bid for consumers’ business, which ensures a highly competitive quote and puts their interests at the heart of the transaction.
The firm raised £850,000 to fund its app launch last year, securing £200,000 more than it intended to raise and closing the investment window nine days early. Since the initial funding round the business has grown from strength to strength, adding three new developers to its technology operation and moving to larger premises within Salvus House at Aykley Heads to house its growing team. Alongside its new appointments, honcho is working with Durham University to host paid internships for undergraduates looking to begin a career in technology development and other areas.
Michael Vassallo, Investment Director at Maven, said: “honcho’s platform will provide a fun, engaging and more cost-efficient way of purchasing insurance products via its unique reverse auction marketplace model. The business has grown significantly since Maven first invested last year and Maven remains involved through every stage of the company’s development. We look forward to working with the team as it enters its next exciting phase of growth.”
Gavin Sewell, CEO at honcho, said: “The past year has been an incredible journey for honcho, and we are delighted to be able to today announce this significant investment to enable our next phase of growth. The team at Maven have been supportive and engaged partners since early 2018, and we are encouraged by their continued belief in the honcho proposition, and in our ability to disrupt what is becoming an ever more distrusted market.
“Our growth plans are already well advanced as we look beyond our imminent full launch into the car insurance sector and into our next markets. These will include bringing honcho’s disruption to the home and contents insurance market as well as to those of van and learner driver insurance. Our commercial team are already in negotiation with a number of potential market participants, including major household names, who see the value that honcho can bring to their businesses. This investment accelerates our next phase, and our talented team can’t wait to get started.”
Sarah Slaven, Operations Director at Business Durham, said: “Aykley Heads is fast becoming an important Fintech cluster for Durham, so it’s extremely exciting to be able to support honcho, one of the leading companies in the sector. Their base at Salvus House offers them the room to grow and provides them with a prestigious location in the heart of the city. We’ve supported them from the beginning and really look forward to continuing to watch them fulfil their potential with the support of the Finance Durham fund.”
The Maven investment team is looking for dynamic businesses, based across the North East, looking for funding to achieve their growth objectives.
If you're an ambitious business with plans to grow, contact Maven's local team or visit mavencp.com to find out more.
