Insurtech Digital Risks feeling brisk with £2.25m funding
Digital Risks, an insurance provider for tech and media businesses, has raised £2.25 million in an investment round led by Concentric.
The funding was aided by Atami Capital, Seedcamp, London Co-Investment Fund and Beazley.
Co-founded by Cameron Shearer and Ben Rose, the insurtech offers a monthly subscription model, aimed at millennial, digital-focused businesses.
The funding will be used for growth, through scaling its marketing, tripling its team and developing new online insurance products. The business also has plans to expand internationally, starting with initial moves into Europe in the next 12 months.
Digital Risks targets the start-up and SME market, covers sectors like software development and IT services, media, digitised traditional businesses, plus new technology sub-sectors like fintech, medtech and edutech.
Digital Risks claims its subscription model offers more affordability and accessibility to growing businesses.
Cameron Shearer, CEO and co-founder of Digital Risks, comments: “The digital industries are growing at a phenomenal rate, yet the commercial insurance industry has been characteristically slow to respond, leaving many tech start-ups and SMEs unable to protect themselves adequately.”
“The industry needs to evolve in so many ways, from product design, to distribution and customer engagement. There’s also a lack of understanding of emerging technologies, the risks involved and how to cover them, particularly with the rise in online threats, such as data breaches and social engineering,” he adds.
The UK’s digital industries are growing 32% faster than any other part of the economy, representing 1.9 million businesses in the UK, with anticipated growth of 5% each year.
Digital Risks’ own software automates the process of buying and managing insurance, considering risks individually and placing customers with the most suitable provider. The company claims the system follows a similar model to the more traditional offline broker process, but online.
Its products are backed by underwriters, including Aviva, Tokio Marine and Beazley.