This morning, Wunderright, a Boston-based software startup, announced that it had raised $ 3 million in the initial round led by Spark Capital.
Wunderite creates and sells software designed to help insurance agencies more quickly insure insurance applications and automate some of their processes. The startup fits into multiple startup trends, including vertical SaaS, developer-friendly tooling, and InSearch, with an industry-focused focus on insurance agencies while providing some API hooks.
ClearTips caught co-founders Peter Macdonald (CEO) and Joe Sachnare (COO) about their company and its new investment. Macdonald previously worked for his family’s insurance business, while Shannare gained insurance experience by working for a major player in the market. Both met in business school.
The pair told ClearTips that most property and casualty insurance (cars, pets, homes and other types of popular coverage) are still sold by small and medium-sized agencies. This may be surprising, but most of the United States is not the Bay Area, Austin, Boston, Chicago, Denver, or Seattle.
But while market share points are good news for small insurance groups, it is not very good news for employees of those firms, such as McDonald’s and Shannare, to force many to work with antiquated tooling. Like writing with their hands. or email. A huge market – insurance is a monster industry – with a crumbling competitive market and archaic tooling may prove ripe for Wundrait, provided it can reach a substantial number of companies that it hopes will have a revenue base shall include.
Spark Capital’s Alex Finkelstein is bullish on the company’s prospects. In a conversation with ClearTips concerning the round, he expressed interest in what he called “unsecured” business categories that are widespread fragmentation and either outdated software, or no software. This is precisely the thesis of Wunderite.
Finkelstein feels that such companies can build workflow tooling, develop themselves into becoming the data hubs of their industry customers, which can benefit in a much larger enterprise. So he has high expectations for the startup from his current product remake.
Today, startups are just seven people – four in the United States, three in the Philippines – but are expected to grow from 15 to 20 this year.
Finally, why did the company raise $ 3 million in a market when it seems that each round is ten times the size of three years ago? The founders said they fit into the “early stages” of the product-market, so they wanted to start building their sales team without overspeeding. When asked the same question, Finkelstein said that the company had outlined several milestones that it wanted to meet, and $ 3 million was needed to reach it. At what point can it raise more capital at higher valuations.
Wunderite – is a portmanteau of the German word “surprise,” meaning surprise or miracle, and “underwriting,” which is English for risk-taking in exchange for a fee, with a little drag and drop of its sales legs. Wealth is for More revenue points on the board. Let us see how well it can augment its revenue operations with its new capital.